Does this beta reflect the fund''s investment objectives

Assignment Help Finance Basics
Reference no: EM13285019

To make the management of his RRSP portfolio easier, louis is considering selling his individual holdings of Canadian stocks and replacing them with an investment in AGF Canada Class mutual fund. His current portfolio offers him a steady dividend stream and some modest growth potential.

The investment objective of the fund is to provide long-term capital growth through shares of Canadian companies with above-average growth in sales, earnings and cash flow. The manager uses a bottom-up growth investment style favouring large-cap growth companies trading at a reasonable price. The manager identifies companies with the ability to generate above-average growth in sales, earnings and cash flow. The fund tends to remain fully invested across all market cycles with low portfolio turnover.

3 year Beta = 0.82, 3 year risk = 9.03 and 10 year av return of 5.75%.

Would such a move be appropriate, given the investment objectives of the fund?

Does this beta reflect the fund's investment objectives?

 

Reference no: EM13285019

Questions Cloud

What is the maximum height of the stadium : Ted Williams hits a baseball with an initial velocity of 120 miles per hour (176 ft/s) at an angle of ? = 35 degrees to the horizontal. what is the maximum height of the stadium
Explain what is the percent dissociation of (ch3)2nh : Dimethylamine, (CH3)2NH, is a weak base ( Kb = 5.4 x 10?4). What is the pH of a 0.50 M solution and what is the percent dissociation
Draw a mod-10 johnson counter using d-bistables : 1. Design a synchronous Mod-10 up counter from 1st principles nusing K-MAPS. Use Diagram 1(insert answer book) and also draw the final counter in your book. 2. Draw a MOD-10(5-bit) Johnson counter using D-bistables.
What was the carts initial speed : A wheeled cart is shoved up an inclined plane with an unknown initial speed. What was the cart's initial speed
Does this beta reflect the fund''s investment objectives : Would such a move be appropriate, given the investment objectives of the fund?
Calculate m when signals maximum p-p value raises : A 2-MHz carrier is modulated by a music signal that has frequency components from 20 Hz to 8 kHz. Determine the range of frequencies generated for the upper and lower sidebands of AM signal.
How high does the ladder reach on the house : A ladder base is 6m away from a house, and the fully extended ladder is 10m long when it leans against the house
Explain a saturated solution of iron(ii) hydroxide : A saturated solution of iron(II) hydroxide at 25°C contains 1.0 x 10-5 M Fe2+ ions. Determine the ?G° for the solution at this temperature.
What is the amount of the annual dividend : The preferred stock of ABC Co. offers a 9.5% rate of return. The stock is currently priced at $60.00 per share. What is the amount of the annual dividend?

Reviews

Write a Review

Finance Basics Questions & Answers

  Finance future value or present value

Calculate the equal annual deposits that you must make for the next 25 years( with the first deposit occurring one year from today) to achieve your desired retirement flow.

  Consolidation and noncontrolling interest

On January 1, 2010, Doone corporation acquired 60 percent of outstanding voting stock of Rockne company for 300,000 consideration. Make Doone's 2011 consolidated entries required by intra entity inventory transfers?

  What coupon rate should the hot dog shack set

Comparable bonds in the market have a 6.5 percent annual coupon, 15 years to maturity, and are selling at 97.687 percent of par. What coupon rate should The Hot Dog Shack set on its bonds?

  What coupon rate should the company set

Coccia Co. wants to issue new 16-year bonds for some much-needed expansion projects. The company currently has 8 percent coupon bonds on the market that sell for $1,065, make semiannual payments, and mature in 16 years.

  What is fama target debt-equity ratio

Fama's Llamas has a WACC of 10.30 percent. The company's cost of equity is 13.2 percent, and its cost of debt is 8.9 percent. The tax rate is 40 percent.

  Computation of multiple cash flows for a year

Computation of multiple cash flows for a year and Future value of a $1 annuity when R= 8% compounded annually and t=200

  Determine the value of a share

A company has an expected dividend next year of $1.20 each share, a zero growth rate of dividends, and a required return of 10%. The value of a share of the company's common stock;

  Computation of effective annual yield bond value

Computation of effective annual yield bond value Assume that the 5-year bond paying $40 semi-annually is purchased at par

  Minimizing lost interest and operating cost

A Corporation is planning opening lockboxes in several cities to reduce the 'float' waiting for mailed payments. In what cities should lockboxes be opened to minimize lost interest and operating cost.

  Determine annual effective rate earned on investments

A Corporation invests $1,000,000 at the beginning of the year. It adds another $250,000 at the end of 1st quarter, withdraws $350,000 at the end of second quarter,

  Construct a payoff table using the expected value model

Estimate the financial risks of manufacturing 6,000 units of a product rather than buying them from a vendor. Manufacture = $50,000 one-time set up cost + $60/unit

  Compute the covariance

Suppose you are planning investing in two stocks, Pelts, Corporation, that manufactures fur coats, and PITA, Corporation, a for-profit animal-rights advocacy group. Pelts and PITA are perfectly negatively correlated.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd