Chapter 2.3, Problem 32E

Table 2.12 shows a data set containing information for 45 mutual funds that are part of the Morningstar Funds 500 for 2008. The data set includes the following five variables:

F und Type: The type of fund, labeled DE (Domestic Equity), IE (International Equity), and FI (Fixed Income)

Net Asset Value ($): The closing price per share

5-Year Average Return (%): The average annual return for the fund over the past 5 years

Expense Ratio (%): The percentage of assets deducted each fiscal year for fund expenses

Morningstar Rank: The risk adjusted star rating for each fund; Morningstar ranks go from a low of 1-Star to a high of 5-Stars

1. a. Prepare a crosstabulation of the data on Fund Type (rows) and the average annual return over the past 5 years (columns). Use classes of 0–9.99, 10–19.99, 20–29.99, 30–39.99, 40–49.99, and 50–59.99 for the 5-Year Average Return (%).
2. b. Prepare a frequency distribution for the data on Fund Type.
3. c. Prepare a frequency distribution for the data on 5-Year Average Return (%).
4. d. How has the crosstabulation helped in preparing the frequency distributions in parts (b) and (c)?
5. e. What conclusions can you draw about the fund type and the average return over the past 5 years?

Table 2.12 Financial Data For A Sample Of 45 Mutual Funds