The Husky Fund’s portfolio consists of the following stocks at the beginning of the year: 500 Shares Stock IBM Price $ 180.00 4,000 Shares MSFT $ 30.00 There are 5000 shares outstanding. The fund charges 6% front-end load. The first year, the fund’s assets’ value increases by 10% and the fund pays out $10,000 as distributions to its investors. The fund charges management fees of .5% and 12b-1 fees of .5%. a) What is the fund’s NAV at the beginning and at the end of the first year? b) What is the reported return of the mutual fund in the first year? c) Suppose the mutual fund’s return stays the same each year. What is the return to an investor investing in the fund for 10 years?

The Husky Fund’s portfolio consists of the following stocks at the beginning of the year: 500 Shares Stock IBM Price $ 180.00 4,000 Shares MSFT $ 30.00 There are 5000 shares outstanding. The fund charges 6% front-end load. The first year, the fund’s assets’ value increases by 10% and the fund pays out $10,000 as distributions to its investors. The fund charges management fees of .5% and 12b-1 fees of .5%. a) What is the fund’s NAV at the beginning and at the end of the first year? b) What is the reported return of the mutual fund in the first year? c) Suppose the mutual fund’s return stays the same each year. What is the return to an investor investing in the fund for 10 years?

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter3: Data Visualization

Section: Chapter Questions

Problem 6P: The file MutualFunds contains a data set with information for 45 mutual funds that are part of the...

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