0% 0 0 TABLE 5.3 Net Returns of Index Funds with Varying Characteristics Ten-Year Assumed Residual Value of Gross Sales Expense Operating Net $10,000 Return Charge Ratio Efficiency Return Investment" Market index 12% 0% 0% 12% $31,100 No load Low cost Efficient 12 0.20 11.8 30,500 No load Low cost Inefficient 12 0.20 -0.20 11.6 30,000 No load High cost Inefficient 12 0.80 -0.30 10.9 28,100 Load High cost Inefficient 12 0.80 -0.30 10.2 26,500 "Difference between target index and portfolio return before cost. **Assumed 10-year holding period. Question 4 (worth 25 points). Interpret the above table. 0 0 0% 0 0 TABLE 5.3 Net Returns of Index Funds with Varying Characteristics Ten-Year Assumed Residual Value of Gross Sales Expense Operating Net $10,000 Return Charge Ratio Efficiency Return Investment" Market index 12% 0% 0% 12% $31,100 No load Low cost Efficient 12 0.20 11.8 30,500 No load Low cost Inefficient 12 0.20 -0.20 11.6 30,000 No load High cost Inefficient 12 0.80 -0.30 10.9 28,100 Load High cost Inefficient 12 0.80 -0.30 10.2 26,500 "Difference between target index and portfolio return before cost. **Assumed 10-year holding period. Question 4 (worth 25 points). Interpret the above table. 0 0