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)

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 ).

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)

*Please include excel formulas*

XYZ Fund S&P 500 S Cumulative Return Annualized Return FV of $100 in 2019 Module 3 Homework: Questions 1 & 2 Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 XYZ Fund S&P 500 22.32% 23.00% 32.46% 33.40% 28.47% 28.60% 21.12% 21.00% -8.85% -9.10% -14.06% -11.90% -22.10% -22.10% 29.58% 28.70% 10.57% 10.90% 2.31% 4.90% 11.46% 15.80% 6.75% 5.50% -36.36% -37.00% 26.69% 26.50% 13.02% 15.10% 3.63% 2.10% 16.00% 16.00% 31.49% 32.40% 10.96% 13.70% 3.71% 1.38% 12.43% 11.96% 22.18% 21.80% -6.90% -4.38% 30.17% 31.49% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019