Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Year-end prices and dividends for Nopat Mutual Fund for each of six years are listed below along with the actual yield (return) on a

image text in transcribed

1. Year-end prices and dividends for Nopat Mutual Fund for each of six years are listed below along with the actual yield (return) on a money market fund called Emfund. 2004 2005 2006 2007 2008 2009 Nopat Fund Year-End Price $28.50 $26.80 $29.60 $31.40 $34.50 $37.25 Nopat Fund Year. Nopat Annual Holding Emfund Return End Dividend Period Return for the Year $0.14 3.00% $0.15 4.00% $0.17 4.30% $0.17 ? 5.00% $0.19 4.10% $0.22 6.00% Average risk-free rate over the five years 2005 - 2009 is 2.8%. Risk-free rate for 2004 is 2.8%. A. Calculate the annual holding period returns for a beginning-of-year investment in Nopat fund for each of the five years over the period 2005- 2009 (% with two decimal places). What is the arithmetic mean annual total return on an investment in Nopat fund shares (dividends reinvested) over the period 20052009? C. What is the average compound annual rate of return on an investment in Nopat fund made at year end 2004 if it were held (dividends reinvested) until the end of 2009 B. 1. Year-end prices and dividends for Nopat Mutual Fund for each of six years are listed below along with the actual yield (return) on a money market fund called Emfund. 2004 2005 2006 2007 2008 2009 Nopat Fund Year-End Price $28.50 $26.80 $29.60 $31.40 $34.50 $37.25 Nopat Fund Year. Nopat Annual Holding Emfund Return End Dividend Period Return for the Year $0.14 3.00% $0.15 4.00% $0.17 4.30% $0.17 ? 5.00% $0.19 4.10% $0.22 6.00% Average risk-free rate over the five years 2005 - 2009 is 2.8%. Risk-free rate for 2004 is 2.8%. A. Calculate the annual holding period returns for a beginning-of-year investment in Nopat fund for each of the five years over the period 2005- 2009 (% with two decimal places). What is the arithmetic mean annual total return on an investment in Nopat fund shares (dividends reinvested) over the period 20052009? C. What is the average compound annual rate of return on an investment in Nopat fund made at year end 2004 if it were held (dividends reinvested) until the end of 2009 B

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investments An Introduction

Authors: Herbert B. Mayo

13th Edition

0357127951, 978-0357127957

More Books

Students also viewed these Finance questions