In a recent 5-year period, mutual fund manager Diana Sauros produced the following percentage rates of return for the Mesozoic Fund. Rates of return on the market index are given for comparison. 1 2 3 4 5 Fund -1.5 +24.1 +42.0 +11.0 +0.5 Market index -0.6 +17.0 +31.5 +10.0 -0.4 a. Calculate (a) the average return on both the Fund and the index, and (b) the standard deviation of the returns on each. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Did Ms. Sauros do better or worse than the market index on these measures? Mesozoic Fund Market Portfolio Return Return Average return a. Standard deviation Did Ms. Sauros do better or worse than the b. market index on these measures?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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In a recent 5-year period, mutual fund manager Diana Sauros produced the following percentage rates of return for the Mesozoic
Fund. Rates of return on the market index are given for comparison.
2
3
4
Fund
-1.5
+24.1 +42.0 +11.0
+0.5
Market index
-0.6
+17.0 +31.5
+10.0
-0.4
a. Calculate (a) the average return on both the Fund and the index, and (b) the standard deviation of the returns on each. (Do not
round intermediate calculations. Round your answers to 2 decimal places.)
b. Did Ms. Sauros do better or worse than the market index on these measures?
Mesozoic Fund Market Portfolio
Return
Return
Average return
а.
Standard deviation
Did Ms. Sauros do better or worse than the
b.
market index on these measures?
Transcribed Image Text:In a recent 5-year period, mutual fund manager Diana Sauros produced the following percentage rates of return for the Mesozoic Fund. Rates of return on the market index are given for comparison. 2 3 4 Fund -1.5 +24.1 +42.0 +11.0 +0.5 Market index -0.6 +17.0 +31.5 +10.0 -0.4 a. Calculate (a) the average return on both the Fund and the index, and (b) the standard deviation of the returns on each. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Did Ms. Sauros do better or worse than the market index on these measures? Mesozoic Fund Market Portfolio Return Return Average return а. Standard deviation Did Ms. Sauros do better or worse than the b. market index on these measures?
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