Mutual funds are classified as load or no-load funds. Load funds require an investor to pay an initial fee based on a percentage of the amount invested in the fund. The no-load funds do not require this initial fee. Some financial advisors argue that the load mutual funds may be worth the extra fee because these funds provide a higher mean rate of return than the no-load mutual funds. A sample of 30 load mutual funds and a sample of 30 no-load mutual funds selected for analysis are contained in the Excel Online file below. Data were collected on the annual return for the funds over a five-year period. Construct a spreadsheet to answer the following questions. Open spreadsheet a. Formulate Но and Ha such that rejection of Ho leads to the conclusion that the load mutual funds have a higher mean annual return over the five-year period. Họ : µload – Hno-load Ha : Hload – Hno-load b. Use the 60 mutual funds in the table above to conduct the hypothesis test. What is the p-value? p-value is (to 4 decimals) At a = .05, what is your conclusion? Can conclude that the mutual funds with a load have a greater mean rate of return.
Mutual funds are classified as load or no-load funds. Load funds require an investor to pay an initial fee based on a percentage of the amount invested in the fund. The no-load funds do not require this initial fee. Some financial advisors argue that the load mutual funds may be worth the extra fee because these funds provide a higher mean rate of return than the no-load mutual funds. A sample of 30 load mutual funds and a sample of 30 no-load mutual funds selected for analysis are contained in the Excel Online file below. Data were collected on the annual return for the funds over a five-year period. Construct a spreadsheet to answer the following questions. Open spreadsheet a. Formulate Но and Ha such that rejection of Ho leads to the conclusion that the load mutual funds have a higher mean annual return over the five-year period. Họ : µload – Hno-load Ha : Hload – Hno-load b. Use the 60 mutual funds in the table above to conduct the hypothesis test. What is the p-value? p-value is (to 4 decimals) At a = .05, what is your conclusion? Can conclude that the mutual funds with a load have a greater mean rate of return.
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
| Mutual Funds - Load | Load Return | Mutual Funds - No Load | No Load Return | |
| American National Growth | 14.71 | Amana Income Fund | 11.24 | |
| Arch Small Cap Equity | 13.87 | Berger One Hundred | 10.13 | |
| Bartlett Cap Basic | 17.33 | Columbia International Stock | 10.17 | |
| Calvert World International | 9.71 | Dodge & Cox Balanced | 14.06 | |
| Colonial Fund A | 14.33 | Evergreen Fund | 15.61 | |
| Common Sense Growth | 14.44 | Fidelity Fund | 18.61 | |
| Corefund Core Equity | 18.07 | Forthis Advtg Cap App | 11.38 | |
| Davis Convert Seurities | 17.61 | Founders Blue Chip Fund | 15.15 | |
| Deleware Small Cap | 18.47 | Goldman Core Fixed Income | 8.38 | |
| Dreyfus Premium Value | 13.15 | Heartland Value | 16.15 | |
| Federated Stocks & Bonds | 13.01 | Janus Fund | 13.82 | |
| First Invest FD for Income | 13.94 | Manstay Cap Appriciation | 15.29 | |
| Flag Inv Emerging Growth | 14.89 | Merrill Spec Value | 14.42 | |
| Fortis Equity Capital | 15.26 | Mutual Beacon | 17.49 | |
| FPA Capital | 25.26 | Oberweis Emerging Growth | 9.06 | |
| Franklin STR GL UT | 18.68 | Paine Webber Growth & Income | 11.89 | |
| Gabelli Value Fund | 23.85 | Pimco Total Return | 6.43 | |
| IDS New Dimensions | 19.28 | Prudential Equity | 16.29 | |
| John Hancock Growth & Income | 18.66 | Putnam Growth & Income | 15.80 | |
| Lord Abbett Dev Growth | 22.65 | Royce FD Micro-Cap | 15.05 | |
| Merrill Basic Value | 20.15 | Scudder Development | 10.80 | |
| MFS World Tot Return | 12.59 | Smith Barney Appreciation | 13.09 | |
| New England Growth Opp | 19.06 | Stein Roe Capital Oppty | 17.70 | |
| Oppenhmr Quest Small Cap | 15.47 | T Rowe Price Balanced | 11.57 | |
| Phoenix Worldwide | 14.88 | Thompson Plumb Growth | 16.58 | |
| Princor Bond | 8.70 | USAA Growth & Tax Strat | 9.89 | |
| Stagecoach Disd Income | 14.72 | Vanguard Equity Income | 17.00 | |
| United Contl Income | 11.89 | Vanguard Windsor | 18.71 | |
| Victory OH Regional | 18.74 | Vontobel Intl Equity | 11.56 | |
| Zweig SR TR Apprec | 12.90 | Weith Value | 17.82 |
Transcribed Image Text:Mutual funds are classified as load or no-load funds. Load funds require an investor to pay an initial fee based on a percentage of the amount
invested in the fund. The no-load funds do not require this initial fee. Some financial advisors argue that the load mutual funds may be worth
the extra fee because these funds provide a higher mean rate of return than the no-load mutual funds. A sample of 30 load mutual funds and
a sample of 30 no-load mutual funds selected for analysis are contained in the Excel Online file below. Data were collected on the annual
return for the funds over a five-year period. Construct a spreadsheet to answer the following questions.
X
Open spreadsheet
a. Formulate
Ho and
Ha such that rejection of
Ho leads to the conclusion that the load mutual funds have a higher mean annual return over the five-year period.
Но : Моad
Uno-load
На : Моad
- Uno-load
>
b. Use the 60 mutual funds in the table above to conduct the hypothesis test. What is the p-value?
p-value is
(to 4 decimals)
At a = .05, what is your conclusion?
Can conclude
that the mutual funds with a load have a greater mean rate of return.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman