1. XYZ is an actively managed mutual fund that invests in US large capitalization stocks and seeks to outperform the S&P 500. The annual returns of XYZ Fund and an S&P 500 Index Fund from 1996 through 2019 are shown in the Excel file below: (25 pts)

Module 3 Homework Data.xlsx

Use Excel to calculate the following:

a) What is the cumulative return & average annualized return of XYZ Fund and the S&P 500 over the period? (15 pts)

(Hint: Students may find the following tutorial useful when performing these calculations in Excel. The Excel functions covered in the tutorial will come in handy in later assignments ).

Excel Tutorial_Product Function.xlsx

b) Assuming an initial investment of $100 at the beginning of 1996, what would be the value at the end of 2019 for XYZ Fund and the S&P 500?

b) Assuming an initial investment of $100 at the beginning of 1996, what would be the value at the end of 2019 for XYZ Fund and the S&P 500? (10 pts)

	XYZ Fund	S&P 500
Cumulative Return
Annualized Return
FV of $100 in 2019