This is for Oberweis International Opportunities (OBIOX) Determine the actual re

Question

This is for Oberweis International Opportunities (OBIOX)

Determine the actual return for the fund over the 12 months ending October 2013. (This requires you to obtain prices and cash distributions from a source such as Yahoo Finance.) If an investor invested $10,000 at the end of October 2012, how much would his or her investment be worth by the end of October 2013? What is the level of management fees charged by the fund? Is this reflected in your assessment of return? Finally, what is the appropriate benchmark this fund should be compared to? Would this investor have been better off if they had been able to invest in the benchmark?

Please show how you calcuated the answer and the cite. Thanks for your help!!

Explanation / Answer

Answer:-

Investment (Present Value) (PV) = $10000

Period (Oct,2012 - Oct,2013) (n) = 1 year

Assume Rate of Return (r) = 14% compunded-annually

Future Value ( Investment value end of Oct, 2013) = Present Value * (1 + r)n

= 10000 * (1 + .14)1

= 11400

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