a.Shown below are the investment weights for the securities held in four different portfolios: three mutual funds and the benchmark index that each of those funds uses.

% Security Investment Weight:

Security Benchmark Index Fund X Fund Y Fund Z

1 11% 7% 36% 12%

2 11 15 0 10

3 11 8 10 10

4 11 11 0 10

5 11 8 20 10

6 11 15 0 10

7 11 14 27 10

8 11 15 0 12

9 11 5 0 10

10 11 6 0 10

b.Calculate the active share (AS) measure for Fund X, Fund Y, and Fund Z relative to the benchmark index. Do not round intermediate calculations. Round your answers to one decimal place.

Fund X:%

Fund Y:%

Fund Z:%

c.Using active share calculations above, indicate which fund is the most likely to be considered: (i) a passive index fund, (ii) a closet (or enhanced) index fund, and (iii) an actively managed concentrated stock-picking fund. Explain the reason for your classification.

1.Fund X is considered-Select- from [an actively managed concentrated stock-picking funda closet (or enhanced) index funda passive index fund] because, it-Select-from [differs,does not differ] in the investment weights of holdings relative to the benchmark index.

2.Fund Y is considered-Select- from [an actively managed concentrated stock-picking funda closet (or enhanced) index funda passive index fund] because, it is-Select- from [less more] concentrated than the benchmark and has-Select- from [fewer, more] holdings and-Select- from [bigger, smaller] investment positions. -Select-from

[in number of those holdings, in the investment weights of those holdings, both in number of holdings and the investment weights of those holdings]