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. Fund Market index -1.2 -0.9 Average retum Standard deviation +24.8 +16.0 b. Did Ms. Sauros do better or worse than the market index on these measures? 3 +40.7 +31.7 a. Calculate (a) the average return on both the Fund and the index, and (b) the standard deviation of the returns on each. Note: 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? +11.1 +10.9 Mesozoic Fund Return Market Portfolio Return +0.3 -0.7 11.40
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. Fund Market index -1.2 -0.9 Average retum Standard deviation +24.8 +16.0 b. Did Ms. Sauros do better or worse than the market index on these measures? 3 +40.7 +31.7 a. Calculate (a) the average return on both the Fund and the index, and (b) the standard deviation of the returns on each. Note: 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? +11.1 +10.9 Mesozoic Fund Return Market Portfolio Return +0.3 -0.7 11.40
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
Section: Chapter Questions
Problem 1PS
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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.
Fund
Market index
1
-1.2
-0.9
2
+24.8
+16.0
a. Average return
a. Standard deviation
b. Did Ms. Sauros do better or worse than
the market index on these measures?
+40.7
+31.7
4
+11.1
+10.9
a. Calculate (a) the average return on both the Fund and the index, and (b) the standard deviation of the returns on each.
Note: 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 Return
Market
Portfolio.
Return
+0.3
-0.7
11.40
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