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Trava [24]
2 years ago
15

You invested $10,000 in a mutual fund at the beginning of the year when the NAV was $32.24. At the end of the year, the fund pai

d $0.24 in short-term distributions and $0.41 in long-term distributions. If the NAV of the fund at the end of the year was $35.23, what was your return for the year
Business
1 answer:
Llana [10]2 years ago
4 0

Answer:

Return for the year is 11.29%

Explanation:

Beginning of the year, NAV = $32.24.

At the end of the year,

Short-term distributions = $0.24

Long-term distributions = $0.41

End of the year was, NAV = $35.23

No. Of mutual funds = $10000 ÷ $32.24 = 310.1737

Distributions per fund = Short term distributions + Long term distributions = $0.24 + $0.41 = $0.65

Total distributions = $0.65 × 310.1737 = $201.61

Closing value of fund invested = No. Of funds × Closing NAV

Closing value of fund invested = 310.1737 × $35.23 = $10927.42

Total net benefit = (Closing value of fund - Opening value of fund) + Total distributions

Total net benefit = ($10927.42 - $10000) + $201.61

Total net benefit = $1129.03

Now,

Return on fund invested = Total net benefit/Opening value of fund

Return on fund invested = $1129.03 ÷ $10000

Return on fund invested = 0.1129 or 11.29%

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The market risk premium is computed by: adding the risk-free rate of return to the inflation rate. adding the risk-free rate of
OverLord2011 [107]

Answer:

subtracting the risk-free rate of return from the market rate of return

Explanation:

Market risk premium is the premium over the risk free rate that investors demand for holding a risky asset

Market risk premium = market rate of return - risk free rate

the higher the risk premium, the higher the return investors are demanding and the riskier the investment

for example if risk free rate is 5% , market rate of return in industry A is 10% while in industry B it is 20%

Market premium in A = 10% - 5% = 5%

Market premium in b = 20% - 5% = 15%

3 0
3 years ago
Talarczyk Company sold 10,000 Super-Spreaders on December 31, 2017, at a total price of $1,000,000 cash, with a warranty guarant
Greeley [361]

Answer:

Explanation:

Sales revenue to be reported - $1,000,000

Warranty expense - $40,000

Unearned warranty revenue - $12,000

Cash = 1,000,000+12,000 = $1,012,000

Warranty liability - $40,000

5 0
3 years ago
Which of the following is an example of a soft skill?
Stolb23 [73]

Answer:

c because you have to work with people and that is a soft skill

8 0
2 years ago
Durable Goods $1,250 Nondurable Goods $2,130 Services $9,000 Fixed Investment $1,800 Changes to Business Inventory $135 Investme
Anettt [7]

Answer:

Given that,

Durable Goods = $1,250

Non-durable Goods = $2,130

Services = $9,000

Fixed Investment = $1,800

Changes to Business Inventory = $135

Investment in Stocks & Bonds = $15,500

Federal Government Purchases = $1,800

State/Local Government Purchases = $1,700

Transfer Payments = $675

Exports from the United States = $2,100

Imports into the United States = $2,400

(a) Consumption, C = durable goods + non-durable goods + services

                                = $1,250 + $2,130 + $9,000

                                = $12,380

(b) Private investment, I = Fixed investment + change in inventory + Investment in stocks/bonds

                                       = $1,800 + $135 + $15,500

                                       = $17,435

(c) Government spending, G = Federal government purchase + state/local government purchase

                                               = $1,800 + $1,700

                                               = $3,500

(d) Net exports = Exports - Imports

                         = $2,100 - $2,400

                         = -($300)

GDP = C + I + G + NX

        = $12,380 + $17,435 + $3,500 + (-$300)

        = $33,015

7 0
3 years ago
Prepare journal entries to record the following production activities.
blagie [28]

Answer:

1.Dr Work in progress inventory75,000

Dr Payable Factory payroll 75,000

2. Dr Factory overhead 20,000

Cr Factory Payroll Payable 20,000

3. Dr Factory wages payable 95,000

(75,000+20,000)

Cr Cash 95,000

Explanation:

Preparation to record Journal entry

1. Since the amount of $75,000 was been Incurred of the direct labour production this means we have to record the transaction as :

Dr Work in progress inventory75,000

Dr Payable Factory payroll 75,000

2. Since the amount of $20,000 was Incurred of indirect labor in production this means we have to record the transaction as:

Dr Factory overhead 20,000

Cr Factory Payroll Payable 20,000

3. Since factory payroll was paid the transaction will be recorded as :

Dr Factory wages payable 95,000

(75,000+20,000)

Cr Cash 95,000

5 0
2 years ago
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