Assignment 3 Assignment 3 has three parts and is worth 25% of your total grade. Assignment 3 should be completed after Lesson 6. Part 1: Mutual Funds (20 marks) 1. Go to GlobeFund or Morningstar and...

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Answer To: Assignment 3 Assignment 3 has three parts and is worth 25% of your total grade. Assignment 3 should...

Sumit answered on Aug 29 2021
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Assignment 3
FNCE249v5
Student Name:
Part 1: Mutual Funds
1.
    Serial Number
    Name of the Fund
    Type
    Symbol
    1
    Evolve Cyber Security Index Uh Fund USD
    Index Fund
    CYBR-U-T
    2
    Digital Consumer Dividend Fund
    Dividend
Fund
    MDC-UN-T
    3
    Middlefield Global Real Asset Fund
    Global Fund
    RA-UN-T
    4
    Energy Capped Index
    Energy Index
    TTEN
    5
    S&P 500 Information Technology
    Information Technology Index
    SRIT
    6
    High Income Energy CDN Index
    High Income
    TXHE
2.
    Name of the Fund
    Load Fees
    MER
    1-year return
    3-year Return
    5 Year Return
    Return from Inception
    Evolve Cyber Security Index Uh Fund USD
    NA
    1.10%
    38.18%
    NA
    NA
    25.06%
    Digital Consumer Dividend Fund
    NA
    1.10%
    29.60%
    NA
    NA
    29.13%
    Middlefield Global Real Asset Fund
    NA
    1.10%
    12.78%
    NA
    NA
    12.78%
    Energy Capped Index
    NA
    1.10%
    13.75%
    18.26%
    18.19%
    14.72%
    S&P 500 Information Technology
    NA
    1.10%
    14.78%
    11.45%
    12.74%
    16.78%
    High Income Energy CDN Index
    NA
    1.10%
    16.86%
    17.48%
    17.89%
    12.78%
Part 2: Investment Portfolio Review
Chosen Stocks:
(a). Royal Bank of Canada (RY)
(b). Canadian Natural Resources (CNQ)
    
    Date of Investment
    Latest Business Day
    Period
    Opening NAV
    Ending NAV
    Dividend
    Royal Bank of Canada
    27-05-2020
    25-08-2020
    90
    103.23
    96.59
    0
    Canadian Natural Resources
    27-05-2020
    25-08-2020
    90
    25.44
    26.23
    0
1. Total Return Percentage:
Formula used:
End Share Price – Beginning Share Price + Dividends Received (if any)/Beginning Share Price.
Royal Bank of Canada: (96.59-103.23)/96.59
= -6.87%
Canadian Natural Resources: (26.23-25.44)/25.44
= 3.11%
2. Annualized Percentage for each Stock:
Royal Bank of Canada: (-6.87%*365)/90
= -27.87%
Canadian Natural Resources: (3.11%*365)/90
= 12.61%
3. Annualized return for portfolio (assuming equal weight of both securities):
12.61%*0.50 + (-27.87%*0.50)
= -7.63%
Hence the return on the portfolio is lower than the rate of inflation.
4. The yearly return of S&P/TSX Composite index over the past year is 2.73%. The annualized return for the Royal Bank of Canada is much lower than the return of S&P/TSX Composite index because of the problems faced by the banking industry as a whole. Specially during COVID-19, the banking stocks has been hit hard and that is the reason they have yielded negative returns. The stocks of Canadian Natural Resources have...
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