The following table shows the total return and the number of Excel File: data03-17.xlsx for your categories of mutual funds. Type of Fund Domestic Equity International Equity 18.15 11.36 Specialty Stock Hybrid 6.75 a. Using the number of funds as weights, compute the weighted average total return for these mutual funds. (to 2 decimals) % Number of Funds 9,191 2,621 1,419 2,900 Total Return (%) 4.65 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. Wh 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 invest 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 differ 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 a funds could be used for weights. Choose the correct option. 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)
The following table shows the total return and the number of Excel File: data03-17.xlsx for your categories of mutual funds. Type of Fund Domestic Equity International Equity 18.15 11.36 Specialty Stock Hybrid 6.75 a. Using the number of funds as weights, compute the weighted average total return for these mutual funds. (to 2 decimals) % Number of Funds 9,191 2,621 1,419 2,900 Total Return (%) 4.65 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. Wh 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 invest 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 differ 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 a funds could be used for weights. Choose the correct option. 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)
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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Transcribed Image Text:The following table shows the total return and the number of funds for four categories of mutual funds.
Excel File: data03-17.xlsx
Type of Fund
Domestic Equity
International Equity
Specialty Stock
Hybrid
a. Using the number of funds as weights, compute the weighted average total return for these mutual funds. (to 2 decimals)
%
Number of Funds
9,191
2,621
1,419
2,900
Total Return (%)
4.65
18.15
11.36
6.75
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.
- 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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