HomeworkLib
Question

A passive fund manager would be most likely to do which of the following ? A-...

A passive fund manager would be most likely to do which of the following ?

A- Research the stocks in the benchmakr's portfolio extensively so as to align with it

B- Align with both the market and individual funds by using competitive information

C- Beat the Benchmark Index performance by achivieng a higher return

D- Match the fund's performance to the benchmark index 's performance

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

✔ Recommended Answer
Answer #1

D- Match the fund's performance to the benchmark index 's performance

A passive fund manager's job is to attempt to mimic the performance of an index, not to exceed it.

4 0
Add a comment
Know the answer?
Add Answer to:
A passive fund manager would be most likely to do which of the following ? A-...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • True or False: A portfolio manager earned an average return of 9.32% per year over the...

    True or False: A portfolio manager earned an average return of 9.32% per year over the last 10 yearscompared to 8.56% per year for the market benchmark (S&P 500 Index). It is fair for the portfolio manager to claim superior performance because he beat the market. a. True                              b. False The average return of a stock mutual fund over the last 12 years was 8.5 percent per year, comparedto 9.2 percent per year for the S&P 500. This is sufficient...

  • A mutual fund manager has a $20 million portfolio with a beta of 1.7. The risk-free...

    A mutual fund manager has a $20 million portfolio with a beta of 1.7. The risk-free rate is 4.5%, and the market risk premium is 7%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 15%. What should be the average beta of the new stocks added to the portfolio? a) Find the weights of the new...

  • A mutual fund manager, Sally Spartan, has a $24.0 million portfolio with a beta of 1.25....

    A mutual fund manager, Sally Spartan, has a $24.0 million portfolio with a beta of 1.25. The risk-free rate is 3.50%, and the market risk premium is 7.00%. The manager expects to receive an additional $16.0 million which she plans to invest in additional stocks. After investing the additional funds, the total portfolio will equal $40.0 million. Sally wants the final $40 million dollar fund's required and expected return to be 15.0%. What must the average beta of the new...

  • Subject: PORTFOLIO BETA A mutual fund manager has a $20 million portfolio with a beta of...

    Subject: PORTFOLIO BETA A mutual fund manager has a $20 million portfolio with a beta of 0.75. The risk-free rate is 4.00%, and the market risk premium is 5.0%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 19%. What should be the average beta of the new stocks added to the portfolio? Do not round intermediate...

  • PORTFOLIO BETA A mutual fund manager has a $20 million portfolio with a beta of 2.00....

    PORTFOLIO BETA A mutual fund manager has a $20 million portfolio with a beta of 2.00. The risk-free rate is 7.50%, and the market risk premium is 6.5%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 19%. What should be the average beta of the new stocks added to the portfolio? Do not round intermediate calculations....

  • A mutual fund manager has a $20 million portfolio with a beta of 2.00. The risk-free...

    A mutual fund manager has a $20 million portfolio with a beta of 2.00. The risk-free rate is 6.75%, and the market risk premium is 5.0%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 18%. What should be the average beta of the new stocks added to the portfolio? Do not round intermediate calculations. Round your...

  • A mutual fund manager has a $20 million portfolio with a beta of 1.80. The risk-free...

    A mutual fund manager has a $20 million portfolio with a beta of 1.80. The risk-free rate is 7.75%, and the market risk premium is 6.5%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 16%. What should be the average beta of the new stocks added to the portfolio? Negative value, if any, should be indicated...

  • A mutual fund manager has a $20 million portfolio with a beta of 1.40. The risk-free...

    A mutual fund manager has a $20 million portfolio with a beta of 1.40. The risk-free rate is 3.25%, and the market risk premium is 6.5%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 15%. What should be the average beta of the new stocks added to the portfolio? Negative value, if any, should be indicated...

  • A mutual fund manager has a $20 million portfolio with a beta of 1.3. The risk-free...

    A mutual fund manager has a $20 million portfolio with a beta of 1.3. The risk-free rate is 3.5%, and the market risk premium is 9%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 17%. What should be the average beta of the new stocks added to the portfolio? Negative value, if any, should be indicated...

  • A mutual fund manager has a $20 million portfolio with a beta of 1.3. The risk-free...

    A mutual fund manager has a $20 million portfolio with a beta of 1.3. The risk-free rate is 5.5%, and the market risk premium is 9%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 19%. What should be the average beta of the new stocks added to the portfolio? Negative value, if any, should be indicated...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT