Question

A utuel fund is a professionally managed investment scheme thet pocls meney from many investers and invests in a variety of securities. Growth funds focus primarily assets) for samples of 20 large-cap balancer increesing the value of investments, whereas blended funds seek e balance between current income which the funds invest: the population sizes are 825 and 762, (BI) and 20 large-cap growth funds (G)"large-cap refers to the sizes of companiles in ere is data on expense ratio (expenses as a' respectively). 1,05 1.2 1.09 1.63 1.32 1.25 1.26 0.80 1.03 0.64 0.93 2.86 1.01 0.73 0.09 0.79 1.61 1.25 0.93 0.86 Gr 0.52 1.08 1.25 2.15 1.53 1.01 1.11 1.05 1.83 2.07 ..03 1.11 1.76 1.01 1.13 0.92 0.81 1.41 0.61 1.50 (e) Calkulete and compare the values of x, , and s for t of funds. (Round your answers to three decimal places.) e two types e sample of baleiced furids we have redien fo Tor the saimple of growth runds than the sarmple median for the growth The sample meen for the belanced funds is-Selec-then the than the sarmple standard deviatio For she balanced funds is samole standard deviation for the balanced funds is grawth Sele grawt ciect Select runcs (b) Construca comparative boxplat for the two tyres of funds. Expense Ratie Hatio Ratic 3.0 3.0 .0 3.0 2.5 2.5 2.0 2.0 20 2.0 5 1.5 1.5 1.0 0.5 5 0.5 5 1C 0.2 Growth Growth Balanced Growth Balanced Growth Вalancer Balanced Comment on interesting features. The distr butKn of experiset tatios for this semple of balanced funds is-Select 1wile the distribution for grawth funds isSelect- . These balanced and growth mutual funds have similar median expense retios, but experse ratios are generally growth funds

Answer 1

a)

Bi <- c(1.05,1.24,1.09,1.63,1.32,1.25,1.26,0.8,1.03,0.64,0.93,2.86,1.04,0.73,0.09,0.79,1.61,1.25,0.93,0.86)
Gr <- c(0.52,1.08,1.25,2.16,1.53,1.01,1.11,1.05,1.83,2.07,0.92,0.81,1.41,0.61,1.5,1.03,1.11,1.76,1.01,1.13)
summary(Bi)
summary(Gr)
sd(Bi)
sd(Gr)

 summary(Bi)
   Min. 1st Qu.  Median    Mean 3rd Qu.    Max. 
  0.090   0.845   1.045   1.120   1.252   2.860 
> summary(Gr)
   Min. 1st Qu.  Median    Mean 3rd Qu.    Max. 
  0.520   1.010   1.110   1.245   1.508   2.160 
> sd(Bi)
[1] 0.5355961
> sd(Gr)
[1] 0.4468663

For balanced

mean = 1.120 , median = 1.045 , sd = 0.536

For growth funds

mean = 1.245 , median = 1.110 , sd = 0.447

b)

boxplot(Bi,Gr)

LO O 2 1 O'0

option iv) is correct