Determining the investment in maverick mutual fund

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Reference no: EM133075718

The table below provides past performance of Maverick Mutual Fund. Bob has invested $10,000 in the fund on 31st Dec 2019 and he still holds that investments. As on 30th June 2021, the fund manager claims that the fund has earned an annualized return of 8.26% over the past 6 quarters. (See the details in table). 

 Maverick Mutual Fund

Jenny's Investment Decisions

Dates

 Unit Price

Quarterly Return

Buy

Sell

31/12/2019

 14.49

 

 

 

31/03/2020

 9.95

-31.33%

100 Units

 

30/06/2020

 10.45

5.03%



30/09/2020

 9.42

-9.86%

500 Units

 

31/12/2020

 12.85

36.41% 

 

 

31/03/2021

 12.91

0.47%

 

 

30/06/2021

 14.37

11.31%

 

600 Units

Average Quarterly Return

2.00%

 

Effective Average Annual Return

8.26%

 

Jenny also invested in Maverick Mutual Fund. She purchased 100 units of the fund on 31st of March 2020 and again purchased another 500 units on 30th September 2020. Finally, she sold all her Maverick Mutual Fund units on 30th June 2021. Do you think Jenny earned higher rate of return than what Bob has earned from his investment in Maverick Mutual Fund? Why or Why not? (Numerical calculations are not necessary).

Reference no: EM133075718

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