a. Using the number of funds as weights, compute the weighted average total return for these mutual funds. (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 in part (a)? Discuss. What else might be used for weights? (1) Using "number of funds as weights will only be a good approximation if the amount invested in various funds is approximately equal. The amount invested in each fund could be used for weights. (ii) Using "number of funds" as weights results in a good approximation regardless of the amount invested in various funds. There is no need to use a different weight. (iii) Using "number of funds" as weights will only be a good approximation if the amount invested in various funds is approximately equal. There is no other option that could be used for weights. used for weights. (iv) Using "number of funds" as weights results in a good approximation regardless of the amount invested in various funds. The total amount invested in all funds could Choose the correct option. - Select your answer. V c. Suppose you invested $10,000 in this group of mutual funds and diversified the investment by placing $2,000 in Domestic Equity funds, $4,000 in International Equity funds, $3,000 in Specialty Stock funds, and $1,000 in portfolio? (to 2 decimals)
a. Using the number of funds as weights, compute the weighted average total return for these mutual funds. (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 in part (a)? Discuss. What else might be used for weights? (1) Using "number of funds as weights will only be a good approximation if the amount invested in various funds is approximately equal. The amount invested in each fund could be used for weights. (ii) Using "number of funds" as weights results in a good approximation regardless of the amount invested in various funds. There is no need to use a different weight. (iii) Using "number of funds" as weights will only be a good approximation if the amount invested in various funds is approximately equal. There is no other option that could be used for weights. used for weights. (iv) Using "number of funds" as weights results in a good approximation regardless of the amount invested in various funds. The total amount invested in all funds could Choose the correct option. - Select your answer. V c. Suppose you invested $10,000 in this group of mutual funds and diversified the investment by placing $2,000 in Domestic Equity funds, $4,000 in International Equity funds, $3,000 in Specialty Stock funds, and $1,000 in portfolio? (to 2 decimals)
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
![### Educational Content on Weighted Average Total Return
**Type of Fund**
| Type of Fund | Number of Funds | Total Return (%) |
|-----------------------|-----------------|-----------------|
| Domestic Equity | 9,191 | 4.65 |
| International Equity | 2,621 | 18.15 |
| Specialty Stock | 1,419 | 11.36 |
| Hybrid | 2,900 | 6.75 |
**a.** Using the number of funds as weights, compute the weighted average total return for these mutual funds. (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 in part (a)? Discuss. What else might be used for weights?
- **(i)** Using "number of funds" as weights will only be a good approximation if the amount invested in various funds is approximately equal. The amount invested in each fund could be used for weights.
- **(ii)** Using "number of funds" as weights results in a good approximation regardless of the amount invested in various funds. There is no need to use a different weight.
- **(iii)** Using "number of funds" as weights will only be a good approximation if the amount invested in various funds is approximately equal. There is no other option that could be used for weights.
- **(iv)** Using "number of funds" as weights results in a good approximation regardless of the amount invested in various funds. The total amount invested in all funds could be used for weights.
Choose the correct option.
\[ \text{Select your answer:} \]
**c.** Suppose you invested $10,000 in this group of mutual funds and diversified the investment by placing $2,000 in Domestic Equity funds, $4,000 in International Equity funds, $3,000 in Specialty Stock funds, and $1,000 in Hybrid funds. What is the expected return on the portfolio? (to 2 decimals)
\[ \_\_\_\% \]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F375a8daa-a061-40df-aa13-f324a3b06fab%2F645bb3a7-eb4f-4e47-bce9-ba90e0d25b03%2Fs6l9xvt7_processed.png&w=3840&q=75)
Transcribed Image Text:### Educational Content on Weighted Average Total Return
**Type of Fund**
| Type of Fund | Number of Funds | Total Return (%) |
|-----------------------|-----------------|-----------------|
| Domestic Equity | 9,191 | 4.65 |
| International Equity | 2,621 | 18.15 |
| Specialty Stock | 1,419 | 11.36 |
| Hybrid | 2,900 | 6.75 |
**a.** Using the number of funds as weights, compute the weighted average total return for these mutual funds. (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 in part (a)? Discuss. What else might be used for weights?
- **(i)** Using "number of funds" as weights will only be a good approximation if the amount invested in various funds is approximately equal. The amount invested in each fund could be used for weights.
- **(ii)** Using "number of funds" as weights results in a good approximation regardless of the amount invested in various funds. There is no need to use a different weight.
- **(iii)** Using "number of funds" as weights will only be a good approximation if the amount invested in various funds is approximately equal. There is no other option that could be used for weights.
- **(iv)** Using "number of funds" as weights results in a good approximation regardless of the amount invested in various funds. The total amount invested in all funds could be used for weights.
Choose the correct option.
\[ \text{Select your answer:} \]
**c.** Suppose you invested $10,000 in this group of mutual funds and diversified the investment by placing $2,000 in Domestic Equity funds, $4,000 in International Equity funds, $3,000 in Specialty Stock funds, and $1,000 in Hybrid funds. What is the expected return on the portfolio? (to 2 decimals)
\[ \_\_\_\% \]
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