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cBook roblem 1 1 - 0 8 hown below are the investment weights for the securities held in four different portfolios: three mutual funds and
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hown 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.
Percentage Security Investment Weight:
a Calculate the active share AS measure for Fund X Fund V and Fund Z relative to the benchmark index. Do not round intermediate calculations. Round your
answers to one decimal place.
Fund :
Fund :
Fund Z:
b Using these AS calculations, 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 stockpicking fund. Explain the reason for your classification.
Fund is considered
index.
because, it
J in the investment weights of holdings relative to the benchmark
Fund is considered
because, it is
concentrated than the benchmark and has
holdings and
investment positions.
Fund is considered Select
because its security holdings come closer to matching the benchmark;
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