Concept explainers
The following table shows the total return and the number of funds for four categories of mutual funds.
a.Using the number of funds as weights, compute the weighted average total return for these mutual funds.
b.Is there any difficulty associated with using the "number of funds" as the weights in computing the weighted average total return in part (a)? Discuss. What else might be used for weights?
c.Suppose you invested $10,000 in this group of mutual funds and di versified the investment by placing $2000 in Domestic Equity funds, $4000 in International Equity funds, $3000 in Specialty Stock funds, and $1000 in Hybrid funds. What is the expected return on the portfolio?
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Essentials of Modern Business Statistics with Microsoft Office Excel (Book Only)
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill