Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are the manager of the Mighty Fine mutual fund. The following table reflects the activity of the fund during the last quarter. The fund

image text in transcribed

You are the manager of the Mighty Fine mutual fund. The following table reflects the activity of the fund during the last quarter. The fund started the quarter on January 1 with a balance of $60 million. Mighty Fine Mutual Fund Monthly Data (measured at end of month) January February Net inflows ($ million) 4.3 -5.3 HPR (%) -1.90 5.60 March 0 4.80 a. Calculate the quarterly arithmetic average return on the fund. (Round your answer to 2 decimal places.) Arithmetic average 2.83 % b. Calculate the quarterly geometric (time-weighted) average return on the fund. (Round your answer to 2 decimal places.) Geometric average 2.78 % C. Calculate the quarterly dollar-weighted average return on the fund. (Round your answer to 2 decimal places.) Dollar-weighted average return

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

Modern Portfolio Theory and Investment Analysis

Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann

9th edition

9781118805800, 1118469941, 1118805801, 978-1118469941

More Books

Students also viewed these Finance questions