Tuesday

March 3, 2015

March 3, 2015

Posted by **abdull** on Sunday, October 16, 2011 at 8:35pm.

Morningstar tracks the total return for a large number of mutual funds. The following table shows the total return and the number of funds for four categories of mutual funds (Morningstar Funds500, 2008).

a. Using the number of funds as weights, compute the weighted average total return for the mutual funds covered by Morningstar. (to 2 decimals)

%

b. Is there any difficulty associated with using the "number of funds" as the weights in computing the weighted average total return for Morningstar in part (a)? Discuss. What else might be used for weights?

The input in the box below will not be graded, but may be reviewed and considered by your instructor.

c. Suppose you had invested $10,000 in mutual funds at the beginning of 2007 and diversified 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? (to 2 decimals)

%

- statistics -
**Melisa**, Thursday, November 14, 2013 at 7:01pmA.7.81%

B. ?

C. 40.91%

**Answer this Question**

**Related Questions**

business - wall street journal provides the net asset value, the year to date ...

college math HELP!!!!! - Sharon has a total of $190,000 to invest in three types...

Algebra investment - An investor had a total of 25,000 put into a portfolio of ...

economics - Mutual funds are attractive to small investors because (a) the funds...

Statistics - Probability - A mutual fund company has six funds that invest in ...

Probabability - You are given monthly annualized total return data for two ...

personal finance - Which of the following statements is FALSE: A) Individual ...

Personal finance - Investing in which of the following funds will give you the ...

Personal Finance - What is the risk and return on stocks, bonds, and mutual ...

Economics - Use the concepts of marginal cost and marginal revenue to derive an ...