please please help, I will rate. R calculation that reduces extensive calculatio

Question

please please help, I will rate.

R calculation that reduces extensive calculations by assuming a constant rate of return throughout the period, eliminating the need to value the portfolio on the date of each cash flow is known as a) Daily Valuation method b) Modified Dietz method c) Standard deviation method d) Beta coefficient method 7. The statistical test that measures the dispersion of historic prices around the historic average of the same investment is called the: a) beta coefficient b) standard deviation c) alpha coefficient d) market line formula Use the following information to answer questions 8 & 9. On June 1, 2017, an investor purchases stipulation that all distributions be reinvested in the fund. In December 2017, there was a capital gains distribution of $1.00 per unit and it was reinvested at the price of $10. The investor sells all of his units in June 2011 at a unit price of $11. 500 units of a mutual fund at $10 per unit with a 8. What is the investor's ACB before the sale? a) $ 5,000 b) S 5,500 c) $ 6,400 d) S 6,850 9. What is the investor's capital gain after the sale? a) $ 300 b) $ 450 c) $ 550 d) $ 1,000 10. You are reinvesting the distributions from your mutual fund. If the distributions are in the form of eligible dividends, they will be taxed as: a) interest b) capital gains c) dividends d) re-invested dividends 11. Financial advisors often caution investors against purchasing units just before year- end because: a) there may be a capital gains distribution pending b) there may be capital losses held in the fund c) the performance of the fund for that year is not known d) none of the above

Explanation / Answer

Question 6 So eliminating the need to value the portfolio on each day of cash flow is Modified Dietz method which uses a weighted average approach for rate of return Answer is modified dietz method Question 7 Answer is Standard deviation Standard deviation is nothing but dispersion of stock prices against their historical averages Question 8 No of units 500 Jun-17 Cost of each unit 10 Capital gains distribution 1 Dec-17 Total capital gains 500 as it is 1 per unit for total 500 units New units bought 50 As it is reinvested at 10 Total no of mutual funds 550 500+50 ACB before the sale 5500 550 units at 10 per unit Question 9 Sale price 11 Total sale value 6050 550*11 per unit Capital gains 550 Total sale value - ACB before sale Question 10 If the dividend is qualified as dividend they are taxed as capital gains tax Question 11 The reason might be that there may be capital gains distribution pending from the company

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.