Which is the riskiest mutual fund and why?
A.) Fund A because it has the highest alpha
B.) Fund D because it has the greatest loss
C.) Fund D because it has the highest standard deviation
Mutual Funds
Mutual Front-End Expense Fair Market Shares Fund Style x Alpha Beta a Ra Load Ratio Basis Value 210 Fund A MG 14% 1.10 12% 57% .71% $2,500 $2,625
300 Fund B LG 11.5% .5% 0.94 8% 81% 4.5% 1.0% $5,000 $5,100
443 Fund C MV 9% (4%) 0.65 8% 42% 4.5% 2.25% $10,000 $11,075
1,000 Fund D MG -6% 10% 0.70 20% 4% 4% 1.85% $8,000 $7,500
320 Fund E LG 4% 3% 1.10 9% 60% 0% 1.75% $9,500 $8,000
410 Fund F LG 7% 2.5% 0.90 78% 3% 1.5% $10,000 $8,200
Total value of mutual funds: $42,500
Not all distributions from the mutual funds are reinvested.
TOTAL PORTFOLIO VALUE: $210,000
