Fund X -select- (an actively managed concentrated stock-picking fund/ a closet (or enhanced) index fund/ a passive index fund) -select-( differs/ does not differ)

Fund Y -select- (an actively managed concentrated stock-picking fund/ a closet (or enhanced) index fund/ a passive index fund) -select-(less/more) -select-(fewer/more) -select-(bigger/smaller)

Fund Z -select- (an actively managed concentrated stock-picking fund/ a closet (or enhanced) index fund/ a passive index fund) -select-( in number of those holdings/ in the investment weights of those holdings/ both in the number of holdings and the investment weights of those holdings)

Problem 11-08 1 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 10% 11% 36% 11% 2 10 11 0 9 3 10 9 4 10 5 0 11 5 10 14 20 9 6 10 7 0 9 10 10 7 10 5 26 11 8 15 25 9 9 10 10 10 8 0 20 9 11 10 14 a. 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: % b. 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 (ii) an actively managed concentrated stock-picking fund. Explain the reason for your classification. because, it -Select- in the investment weights of holdings relative Fund X is considered -Select- to the benchmark index. because, it is -Select- concentrated than the benchmark and has Fund Y is considered -Select- -Select- v holdings and -Select- v investment positions. Fund Z is considered -Select- because its security holdings come closer to matching the benchmark, -Select- Problem 11-08 1 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 10% 11% 36% 11% 2 10 11 0 9 3 10 9 4 10 5 0 11 5 10 14 20 9 6 10 7 0 9 10 10 7 10 5 26 11 8 15 25 9 9 10 10 10 8 0 20 9 11 10 14 a. 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: % b. 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 (ii) an actively managed concentrated stock-picking fund. Explain the reason for your classification. because, it -Select- in the investment weights of holdings relative Fund X is considered -Select- to the benchmark index. because, it is -Select- concentrated than the benchmark and has Fund Y is considered -Select- -Select- v holdings and -Select- v investment positions. Fund Z is considered -Select- because its security holdings come closer to matching the benchmark, -Select