Essentials-Of-Investments-8th-Ed-Bodie-投资学精要(第八版)课

Chapter04-MutualFundsandOtherInvestmentCompanies4-1CHAPTER04MUTUALFUNDSANDOTHERINVESTMENTCOMPANIES1.Mutualfundsoffermanybenefits.Someofthosebenefitsincludetheabilitytoinvestwithsmallamountsofmoney,diversification,professionalmanagement,lowtransactioncosts,taxbenefits,andreduceadministrativefunctions.2.Close-endfundstradeontheopenmarketandarethussubjecttomarketpricing.Open-endfunds,aresoldbythemutualfundandmustreflecttheNAVoftheinvestments.3.Annualfeeschargedbyamutualfundtopayformarketinganddistributioncosts.4.Aunitinvestmenttrustisanunmanagedmutualfund.Itsportfolioisfixedanddoesnotchangeduetoassettrades,asdoesaclose-endfund..5.Exchange-tradedfundscanbetradedduringtheday,justasthestockstheyrepresent.Theyaremosttaxeffective,inthattheydonothaveasmanydistributions.Theyalsohavemuchlowertransactioncosts.Theyalsodonotrequireloadcharges,managementfees,andminimuminvestmentamounts.6.HedgefundshavemuchlessregulationsincetheyarepartofprivatepartnershipsandfreefrommistSECregulation.Theypermitinvestorstotakeonmanyrisksunavailabletomutualfunds.Hedgefunds,however,mayrequirehigherfeesandprovidelesstransparencytoinvestors.Thisofferssignificantcounterpartyriskandhedgefundinvestorsneedtobemorecarefulaboutthefirmtheinvestwith.7.Anopen-endfundwillhavehigherfeessincetheyareactivelymarketingandmanagingtheirinvestorbase.Thefundisalwayslookingfornewinvestors.Aunitinvestmenttrustneednotspendtoomuchtimeonsuchmatterssinceinvestorsfindeachother.8.Assetallocationfundsmaydramaticallyvarytheproportionsallocatedtoeachmarketinaccordwiththeportfoliomanager’sforecastoftherelativeperformanceofeachsector.Hence,thesefundsareengagedinmarkettimingandarenotdesignedtobelow-riskinvestmentvehicles.9.a.Aunitinvestmenttrustsofferlowcostsandstableportfolios.Sincetheydonotchangetheirportfolio,theinvestorknowsexactlywhattheyown.Theyarebettersuitedtosophisticatedinvestors.b.Open-endmutualfundsofferhigherlevelsofservicetoinvestors.Theinvestorsdonothaveanyadministrativeburdensandtheirmoneyisactivelymanaged.Thisisbettersuitedforlessknowledgeableinvestors.c.Individualsecuritiesofferthemostsophisticatedinvestorsultimateflexibility.Theyareabletosavemoneysincetheyareonlychargedtheexpensestheyincur.Alldecisionsareunderthecontroloftheinvestor.Chapter04-MutualFundsandOtherInvestmentCompanies4-210.Open-endfundsmusthonorredemptionsandreceivedepositsfrominvestors.Thisflowofmoneynecessitatesretainingcash.Close-endfundsnolongertakeandreceivemoneyfrominvestors.Assuch,theyarefreetobefullyinvestedatalltimes.11.Theofferingpriceincludesa6%front-endload,orsalescommission,meaningthateverydollarpaidresultsinonly$0.94goingtowardpurchaseofshares.Therefore:Offeringprice=06.0170.10$load1NAV==$11.3812.NAV=offeringprice(1–load)=$12.30.95=$11.6913.HW14.Valueofstockssoldandreplaced=$15,000,000Turnoverrate=000,000,42$000,000,15$=0.357=35.7%15.a.NAV=million5million3$million200$=$39.40b.Premium(ordiscount)=NAVNAVicePr=40.39$40.39$36$=–0.086=-8.6%Thefundsellsatan8.6%discountfromNAV16.Rateofreturn=NAVyearofStartonsDistributi)NAV(=50.12$50.1$40.0$=0.0880=8.80%Chapter04-MutualFundsandOtherInvestmentCompanies4-317.HW18.Assumeahypotheticalinvestmentof$100.Loadedupa.Year1=100x(1+.06-.0175)=104.25b.Year3=100x(1+.06-.0175)^3=116.30c.Year10=100x(1+.06-.0175)^10=151.62Economyfunda.Year1=100x.98x(1+.06-.0025)=103.64b.Year3=100x.98x(1+.06-.0025)^3=115.90c.Year10=100x.98x(1+.06-.0025)^10=171.4119.NAVa.(450,000,000–10,000,000)/44,000,000=$10pershareb.(440,000,000–10,000,000)/43,000,000=$10pershare20.a.Empiricalresearchindicatesthatpastperformanceofmutualfundsisnothighlypredictiveoffutureperformance,especiallyforbetter-performingfunds.Whiletheremaybesometendencyforthefundtobeanaboveaverageperformernextyear,itisunlikelytoonceagainbeatop10%performer.b.Ontheotherhand,theevidenceismoresuggestiveofatendencyforpoorperformancetopersist.Thistendencyisprobablyrelatedtofundcostsandturnoverrates.Thusifthefundisamongthepoorestperformers,investorswouldbeconcernedthatthepoorperformancewillpersist.Chapter04-MutualFundsandOtherInvestmentCompanies4-421.StartofyearNAV=$20Dividendspershare=$0.20EndofyearNAVisbasedonthe8%pricegain,lessthe1%12b-1fee:EndofyearNAV=$201.08(1–0.01)=$21.384Rateofreturn=20$20.0$20$384.21$=0.0792=7.92%22.Theexcessofpurchasesoversalesmustbeduetonewinflowsintothefund.Therefore,$400millionofstockpreviouslyheldbythefundwasreplacedbynewholdings.Soturnoveris:$400/$2,200=0.182=18.2%23.Feespaidtoinvestmentmanagerswere:0.007$2.2billion=$15.4millionSincethetotalexpenseratiowas1.1%andthemanagementfeewas0.7%,weconcludethat0.4%mustbeforotherexpenses.Therefore,otheradministrativeexpenseswere:0.004$2.2billion=$8.8million24.Asaninitialapproximation,yourreturnequalsthereturnonthesharesminusthetotaloftheexpenseratioandpurchasecosts:12%1.2%4%=6.8%Buttheprecisereturnislessthanthisbecausethe4%loadispaidupfront,notattheendoftheyear.Topurchasetheshares,youwouldhavehadtoinvest:$20,000/(10.04)=$20,833Thesharesincreaseinvaluefrom$20,000to:$20,000(1.120.012)=$22,160Therateofreturnis:($22,160$20,833)/$2