FM 2012 Worksheet

7/30/2019 FM 2012 Worksheet

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FPWM WORKSHEE

1 An investors saves Rs.15575 in your bank which gives him 8% interest pa compounded annual

much money will he get after 10 years?

33,625.26

2 Mr. Gupta wants to have Rs.575000 after ten years for his daughter's education. The prevailing

be invested now to achieve his goal?

185,134.61

3 Mr. Shiv wants to have 8,00,000 after five years for buying a car. What is the amount he will n

he plans to invest in a balanced fund (where return can be estimated at 12 % to be on the conse

Rs. 442,940.60

4 Mr. & Mrs. Shaw spends Rs.360000 per annum to meet annual living costs. They wish to main

after ten years. Their financial planner assumes inflation will be 7% p.a. for the first five years,

they will will need 75% of their present expenses. How much will they need pa after retirement

270000

378,688.97

-582,659.92

5 If the nominal rate of return is 24%, and the rate of inflation is 9%, find the real rate of return.

6 Mr. Gupta who is 30 years old spends R.2,00,000 p.a. to maintain his living standard. He will rinflation is assumed to be 7% for the next thirty years.

If he wants to maintain the same standard of living even after retirement, how much should he

7

8%

1 30 million 15% 1.15 1.073173

2 45 million -5% 0.95

3 20 million 10% 1.1

4 25 million 15% 1.15

5 35 million 3% 1.03

Ulli Lohrmann and his wife, Suzanne Lohrmann, are planning for retirement and want to c

performance of a few mutual funds they are considering for investment. They believe that a co

year period would be appropriate. They are given the following information about the Rhein

that they are considering.

YearAUM at the beginning of the

yearNet Return


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1 2 3 4 50 34.5 20 22 28.75

30 45 20 25 35

4.5 2.25 2 3.75 1.05

34.5 20 22 28.75 36.05Cash Flows (CFt)

8 Lisa earns a return of 6.2% for the last 100 days on stocks and Thomasearns a return of 5% for

Balance at the end of year

Withdrawal by the investor (cash

outflow for the mutual fund) at the

end of the year 0 22.75 0 0

Investment gain (loss)

6.25

Net balance at the beginning of year

2)Compute the geometric mean annual return. How does it compare with the arithmetic mean

3)The Lohrmanns want to earn a minimum annual return of 5 percent. Is the money-weighted

return greater than 5 percent?

YearBalance from previous year

New investment by the investor (cash

inflow for the mutual fund) 30 10.5 0 3

1)Compute the arithmetic mean annual return


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T 1

y. How

rate of interest is 12%.How much is needed to

ed to invest now, if as a moderate risk taker,

vative side) and returns are compounded quarterly?

ain the same standard of living after retirement

and 9% p.a. for the next five years. The family feels after retirement

to fund their present lifestyle?

Effective rate

0.13761

tire at the age of 60 . 1,522,451.01 -19,510,553.53 5,582.48

ave every month if the rate of interest thorughout the period is 12% ?

ompare the past

parison over a five-

alley Superior Fund


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he last three months on mutual funds. Compare the returns.

nnual retu

nnual


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SBI Magnum Emerging Businesses 11.53 24.35 2.21

SBI Magnum Global -0.21 16.5 2.09

SBI Magnum Midcap -3.93 7.77 2.37

Sahara Mid-Cap Fund -5.26 10.96 2.5

Sahara Star Value -2.68 -- 2.5

Sahara Wealth Plus Fixed Pricing -5.41 9.82 2.5

Sahara Wealth Plus Variable Pricing -4.61 10.74 2.5Sundaram Equity Multiplier -9.36 6.41 2.36

Sundaram S.M.I.L.E. Inst -2.87 -- 1.5

Sundaram S.M.I.L.E. Reg -3.84 9.15 2.24

Sundaram Select Midcap Inst -4.69 -- 1.5

Sundaram Select Midcap Reg -5.19 14.19 1.89

Tata Dividend Yield -0.55 18.33 2.35

Tata Growth -1.41 10.3 2.43

Taurus Discovery -3.64 4.55 2.5

Taurus Ethical -6.51 10.66 2.5

UTI Master Value -7.47 18.63 2.18

UTI Mid Cap -2.46 16.42 1.58


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taking a random sample of twenty funds.


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9 Find Holding period returns, mean and standard deviation

Month End price

Dec,1994 42.625

Jan,1995 47.25

Feb,1995 48

Mar,1995 42Apr,1995 42.5

May,1995 43.375

Jun,1995 41.625

Jul,1995 42.375

Aug,1995 41.25

Sep,1995 38.75

Oct,1995 39.5

Nov,1995 43.5

Dec,1995 46

Jan,1996 50.875

Feb,1996 53.375

Mar,1996 53.5

Apr,1996 55.375

May,1996 55.5

Jun,1996 55.5

Jul,1996 58.625

Aug,1996 56.25

Sep,1996 57.375

Oct,1996 57.625

Nov,1996 60.125

Dec,1996 58.875

Documents

FM 2012 Worksheet