I need someone to check my answerIn 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 comparisonYearFund Return (%)Standard deviation mean Deviation 2Market index return (%)Standard Deviation (Mean)Deviation21-1.4-16.52272.91-0.5-11.8139.24224.08.8877.4416.04.722.09341.926.78717.1731.420.1404.01410.9-4.2217.819.9-1.41.9650.2-14.92222.61-0.3-11.6134.56TOTAL75.6 1,307.94 56.5 701.86AVERAGE15.12 261.59 11.3 140.37SD 16.17 11.85Calculate The average return on Mesozoic Fund Return and Market Portfolio ReturnFund return = (-1.4+24+41.9+10.9+0.2)/5 = 15.12Market index return = -0.5+16+31.4+9.9+ (-0.3)]/5 = 11.3The standard deviation of the returns on Mesozoic fund return and Market portfolio returnSD of the Fund = 16.17 and the market portfolio = 11.85Did Ms. Sauros do better or worse than the market index on these measures?The fund provides a greater expected return of 16.17 compared to the market index 11.85 due to higher variance and standard deviation.

Average return of a security is the arithmetic mean of the returns of the security generated over a…

Answered: n a recent 5-year period, mutual fund…

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter3: Data Visualization

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Problem 6P: The file MutualFunds contains a data set with information for 45 mutual funds that are part of the...

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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

Year	Fund Return (%)	Standard deviation mean	Deviation 2	Market index return (%)	Standard Deviation (Mean)	Deviation2
1	-1.4	-16.52	272.91	-0.5	-11.8	139.24
2	24.0	8.88	77.44	16.0	4.7	22.09
3	41.9	26.78	717.17	31.4	20.1	404.01
4	10.9	-4.22	17.81	9.9	-1.4	1.96
5	0.2	-14.92	222.61	-0.3	-11.6	134.56
TOTAL	75.6	1,307.94 56.5		701.86
AVERAGE	15.12	261.59 11.3		140.37
SD		16.17		11.85

Calculate

The average return on Mesozoic Fund Return and Market Portfolio Return

Fund return = (-1.4+24+41.9+10.9+0.2)/5 = 15.12

Market index return = -0.5+16+31.4+9.9+ (-0.3)]/5 = 11.3

The standard deviation of the returns on Mesozoic fund return and Market portfolio return

SD of the Fund = 16.17 and the market portfolio = 11.85

Did Ms. Sauros do better or worse than the market index on these measures?

The fund provides a greater expected return of 16.17 compared to the market index 11.85 due to higher variance and standard deviation.

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