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Mutual funds are dassified as load or no-load funds. Load funds require an Investor to pay an initial fee based on a percentage of the

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Mutual funds are dassified as load or no-load funds. Load funds require an Investor to pay an initial fee based on a percentage of the amount invested in the fund. The no-load funds do not require this initial fee. Some financial advisors argue that the load mutual funds may be worth the extra fee because these funds provide a higher mean rate of return than the no-load mutual funds. A sample of 30 load mutual funds and a sample of 30 no-load mutual funds selected for analysis are contained in the Excel Online file below. Data were collected on the annual return for the funds over a five-year period. Construct a spreadsheet to answer the following questions. X Open spreadsheet a. Formulate Ho and H, such that rejection of Ho leads to the conclusion that the load mutual funds have a higher mean annual return over the five-year period. 0 Ho: Mod - Masinad 1. Houd - Mac-load b. Use the 60 mutual funds in the table above to conduct the hypothesis test. What is the p-value? p-value is (to 4 decimals) At a = .05, what is your conclusion? that the mutual funds with a load have a greater mean rate of return. Load Retur 1441 1567 1713 Porto Adighestruction detect the shaded Form Use the XL Mine Analysis to conduct you stany Adeleting all town is shed the angels The to the place of area (02 M Funde-Load American National Growth Arch Small Cap City tarties Capilasi Car World man Celona Fund Commen w Card Core Davis Converter 10 Deware Small Cap 11 Dreyfus Premium Vale 13 Federated Stacks Bonds 13 Festival For come 1 lag i Emerging Growth 15 Fortis Equity Capital 1 FPA Capital IT Franklin STR OLUT 1 Gobal Vale Fund 1453 1464 16 1821 15.27 1245 12 51 1234 Mutual Funds - No Load Amancome Fund Berger One Hundred Columbia Infomational Stock Dado Con Band Evergreen Fund Fly Fund Words Avig Cape Founders Chiplund Goldman Core Fred income Heartland Value Marty Capronicon Men Spe Value Mutual Beacon Ole Emerging Growth Paine Webber Grote Pimco Total Retur No Load Return 11.24 1013 16 17 1400 1561 1860 11 1616 30 16.15 132 15 14:42 1749 506 1189 Younes Madera 136 2266 153 2195 Significance Level Aloha) Can we conclude that the man with a haver (EnterCard Calcance 10 Neeme ohn Hancock room inte 21 Lord Abbas De Groth 18.00 1556 3415 Prudential Equity Puma Grown income Royce Fo Microcar 1829 1530 1505 Can we conceal them with a food have greater than a retum Car wider Code 1 New Dimension 20 John Hancock Growth income 31 Lord Abbott Dev Growth Meri Base Vale 21 MFS World Tot Retur 24 New England Growth Opp 25 Oppenh Guest Small Cap 2 Phonix Worldwide Princar Bond Stagecoach Did Income 29 United Cont income Victory OH Regional 11 Zweig SR TR Apprec 18.00 1996 24.15 19.25 12.79 19.76 13 57 16.18 5.50 16 32 Prude El Putnam Growth & Income Royce FO Micro Cap Sc Development Smith Barney Appreciation Siin Roe Capital Opply T Row Price Balanced Thompson Plumb Growth USA Growth & Tax SM Vanguard Equity Income Vanguard Windsor Vontobelin Equity With Value 16.29 15 16 1505 10.30 1305 1270 11:57 16 58 9.89 17.00 18.71 1154 1309 19.74 16.30 Mutual funds are dassified as load or no-load funds. Load funds require an Investor to pay an initial fee based on a percentage of the amount invested in the fund. The no-load funds do not require this initial fee. Some financial advisors argue that the load mutual funds may be worth the extra fee because these funds provide a higher mean rate of return than the no-load mutual funds. A sample of 30 load mutual funds and a sample of 30 no-load mutual funds selected for analysis are contained in the Excel Online file below. Data were collected on the annual return for the funds over a five-year period. Construct a spreadsheet to answer the following questions. X Open spreadsheet a. Formulate Ho and H, such that rejection of Ho leads to the conclusion that the load mutual funds have a higher mean annual return over the five-year period. 0 Ho: Mod - Masinad 1. Houd - Mac-load b. Use the 60 mutual funds in the table above to conduct the hypothesis test. What is the p-value? p-value is (to 4 decimals) At a = .05, what is your conclusion? that the mutual funds with a load have a greater mean rate of return. Load Retur 1441 1567 1713 Porto Adighestruction detect the shaded Form Use the XL Mine Analysis to conduct you stany Adeleting all town is shed the angels The to the place of area (02 M Funde-Load American National Growth Arch Small Cap City tarties Capilasi Car World man Celona Fund Commen w Card Core Davis Converter 10 Deware Small Cap 11 Dreyfus Premium Vale 13 Federated Stacks Bonds 13 Festival For come 1 lag i Emerging Growth 15 Fortis Equity Capital 1 FPA Capital IT Franklin STR OLUT 1 Gobal Vale Fund 1453 1464 16 1821 15.27 1245 12 51 1234 Mutual Funds - No Load Amancome Fund Berger One Hundred Columbia Infomational Stock Dado Con Band Evergreen Fund Fly Fund Words Avig Cape Founders Chiplund Goldman Core Fred income Heartland Value Marty Capronicon Men Spe Value Mutual Beacon Ole Emerging Growth Paine Webber Grote Pimco Total Retur No Load Return 11.24 1013 16 17 1400 1561 1860 11 1616 30 16.15 132 15 14:42 1749 506 1189 Younes Madera 136 2266 153 2195 Significance Level Aloha) Can we conclude that the man with a haver (EnterCard Calcance 10 Neeme ohn Hancock room inte 21 Lord Abbas De Groth 18.00 1556 3415 Prudential Equity Puma Grown income Royce Fo Microcar 1829 1530 1505 Can we conceal them with a food have greater than a retum Car wider Code 1 New Dimension 20 John Hancock Growth income 31 Lord Abbott Dev Growth Meri Base Vale 21 MFS World Tot Retur 24 New England Growth Opp 25 Oppenh Guest Small Cap 2 Phonix Worldwide Princar Bond Stagecoach Did Income 29 United Cont income Victory OH Regional 11 Zweig SR TR Apprec 18.00 1996 24.15 19.25 12.79 19.76 13 57 16.18 5.50 16 32 Prude El Putnam Growth & Income Royce FO Micro Cap Sc Development Smith Barney Appreciation Siin Roe Capital Opply T Row Price Balanced Thompson Plumb Growth USA Growth & Tax SM Vanguard Equity Income Vanguard Windsor Vontobelin Equity With Value 16.29 15 16 1505 10.30 1305 1270 11:57 16 58 9.89 17.00 18.71 1154 1309 19.74 16.30

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