Question
Mary Herald works as an investment counsellor at U.S Bank. Recently, an inexperienced investor asked Herald about clarifying the differences between two top performing mutual
Mary Herald works as an investment counsellor at U.S Bank. Recently, an inexperienced investor asked Herald about clarifying the differences between two top performing mutual funds from the last decade: Precious Metals (Here referred as Metals) and Strategic Income Fund (Here referred as Income). The investor shows Herald the return data he has accessed over the internet, but the investor has trouble interpreting the table. Table A shows the return data for these two mutual funds for the years 2000-2009; the data, labelled Fund Returns.
Table A: Returns for the Metals and the Income Funds, 2000-2009
Year | Metals | Income | Year | Metals | Income |
2000 | -7.34 | 4.07 | 2005 | 43.79 | 3.12 |
2001 | 18.33 | 6.52 | 2006 | 34.30 | 8.15 |
2002 | 33.35 | 9.38 | 2007 | 36.13 | 5.44 |
2003 | 59.45 | 18.62 | 2008 | -56.02 | -11.37 |
2004 | 8.09 | 9.44 | 2009 | 76.46 | 31.77 |
Consider the information presented in the Case and answer the following.
(i)Calculate and interprete the mean return of the Metal fund and the mean return of the Income fund.
(ii) Calculate and interprete the 25th and the 75th percentiles for the Metal fund.
(iii) Construct the box plot for the Metal fund and explain each criteria of the box plot that you have obtained
(iv) Calculate the geometric mean for the Metal fund and the Income fund.
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