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portfolio managers are frequently paid a proportion of the funds under management. suppose you manage a $112 million equity portfolio offering a dividend yield (div1/ p0) of 6.2%. dividends and portfolio value are expected to grow at a constant rate. your annual fee for managing this portfolio is 0.62% of portfolio value and is calculated at the end of each year.

Respuesta :

a. Present Value = Value of Portfolio * Annual Fee / Dividend Yield

Present Value = $112 Million * 0.62% / 6.2%

Present Value of Contract = $11.2 Million

b. Present Value = Value of Portfolio * Annual Fee / Dividend Yield

Present Value = $112 Million * 0.62% / 5.2%

Present Value of Contract = $13.35 Million

What does a portfolio manager do?

Portfolio managers are investment decision-makers. They plan and implement venture strategies and forms to meet client objectives and limitations, build and oversee portfolios, make choices on what and when to purchase and offer ventures.

Portfolio managers are called investment managers, wealth directors, resource supervisors, or financial advisors. Be that as it may, the accentuation of a genuine portfolio manager part is on the explanatory side of contributing instead of the deals aspect.

To learn more about Portfolio managers, visit;

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