Question: MGMT is an ETF that is actively managed. It has an expense ratio of 0.77% (per annum). PASS is a passive ETF with an expense

MGMT is an ETF that is actively managed. It has an expense ratio of 0.77% (per annum). PASS is a passive ETF with an expense ratio of 0.08% (per annum). If MGMT's portfolio returns 5.85% in the coming year prior to fees, then what must the portfolio returns prior to fees be in PASS for it to have a similar return net of fees to its investors? Answer in percentage points to the nearest thousandth (e.g. 3.917% as " 3.917" )

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

MGMT is an ETF that is actively managed. It has an expense ratio of 0.77% (per annum). PASS is a passive ETF with an expense ratio of 0.08% (per annum). If MGMTs portfolio returns 5.85% in the coming...

Question 10 0 / 1 pts MGMT is an ETF that is actively managed. It has an expense ratio of 0.77% (per annum). PASS is a passive ETF with an expense ratio of 0.08% (per annum). If MGMT's portfolio...

Bedrock Insurance Company has $543 million in policy assets and $526 million in estimated policy liabilities. It earned $478 million in premium revenue, paid $453 millionfin claims, incurred $30...

Please Provide a 2 to 3 page article review for each, there attached on this question. Your discussion should include a brief summary (including the big ideas or major points of the article) along...

Investments in Focus Questions 1. In what ways is gold similar to silver? 2. In what ways is gold different from silver? 3. What is the definition of volatility? 4. Why is silver more volatile than...

I need help to answer these questions below that are based on the case "Larry Puglia and the T. Rowe Price Blue Chip Growth Fund" 1. How well has the Blue Chip Growth Fund performed in recent years?...

(Questions from Lecture Note and ?Wall Street Journal? Articles) - Discussion Board Activity I need to read the following Lecture Note that I uploaded and some ?Wall Street Journal? articles, and...

Can you please answer the following questions? INVESTMENT FEES and SELECTING A FUND Investors do not receive a bill for yearly investment fees. Instead, the fees are automatically deducted from the...

The AMB Consolidation On August 13, 1997, Anne Shea of the Curators' Fund (the Fund) sat in her office overlooking downtown Kansas City, knowing she had to decide her position on the proposed...

Q1. Martha wants to save up $100,000 as soon as possible so that she can use it as a down payment on her dream house. She figures that she can easily set aside $8,000 per year and earn 8% annually on...

Merit Bay Communications operates a customer call center that handles billing inquiries for several large insurance fi rms. Since the center is located on the outskirts of town, where there are no...

Under modern portfolio theory, which of the following best describes the global minimum variance portfolio? 1 B C The lowest risk portfolio on the capital allocation line ? i 0 0 to plum... ow Search

q , refers to a positive feeling about one's job resulting from an evaluation of its characteristics. Job design Picketing Job satisfaction Positivity offset Constructive dismissal

OUTCOME 3 Determine how to design pay systems.

OUTCOME 1 Discuss the scope of training and development and its strategic aspects.

5. To finish the exercise, the observer/recorder will lead a discussion of the learning principles that were demonstrated. If they were done in this setting, also discuss why they might not be done...