Answered step by step
Verified Expert Solution
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
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started