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 were selected. Data were collected on the annual return for the funds over a five-year period. The data are contained in the data set Mutual. The data for the first five load and first five no-load mutual funds are as follows. Mutual Funds-Load Return American National Growth 15.51 Arch Small Cap Equity 14.57 Bartlett Cap Basic 17.73 Calvert World International 10.31
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
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< Chapter 10, Problem 40SE >
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Bartlett Cap Basic
17.73
Problem 41SE
Calvert World International
10.31
Problem 42SE
Colonial Fund A
16.23
Problem 43SE
Amana Income Fund
13.24
Problem 44SE
Berger One Hundred
12.13
Columbia International Stock 12.17
Dodge & Cox Balanced
16.06
Evergreen Fund
17.61
a. Formulate H, and H such that rejection of H, leads to the
conclusion that the load mutual funds have a higher mean
annual return over the five-year period.
b. Use the 60 mutual funds in the data set Mutual to conduct
the hypothesis test. What is the p-value? At a =.05, what is
your conclusion?
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| 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...
Mutual funds are classified as load or no-load funds. Load funds require an investor to p...
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STATISTICS
Chapter 10, Problem 40SE
F/BUSINESS+ECONOMICS-
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Mutual funds are classified as load or no-load funds. Load funds
ISBN: 9781305881884
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
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this initial fee. Some financial advisors argue that the load mutual
funds may be worth the extra fee because these funds provide a
*Response times vary by subject and
Chapter
question complexity. Median response time
higher mean rate of return than the no-load mutual funds. A
is 34 minutes and may be longer for new
10 Inference About Means And Pi -
sample of 30 load mutual funds and a sample of 30 no-load mutual
subjects.
funds were selected. Data were collected on the annual return for
Section
the funds over a five-year period. The data are contained in the
data set Mutual. The data for the first five load and first five
Chapter Questions
no-load mutual funds are as follows.
Problem 38SE
Mutual Funds-Load
Return
Problem 39SE
American National Growth
15.51
Arch Small Cap Equity
14.57
Problem 40SE
Bartlett Cap Basic
17.73
Problem 41SE
Calvert World International
10.31
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