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		9	%	7	%	38	%	10	%
2		9		13		0		8
3		9		5		15		10
4		9		9		0		8
5		9		11		20		8
6		9		15		0		8
7		9		8		27		10
8		9		8		0		10
9		9		14		0		10
10		9		7		0		10

1. 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: %

2. 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.

   Fund X is considered -Select-an actively managed concentrated stock-picking funda closet (or enhanced) index funda passive index fundItem 4 because, it -Select-differsdoes not differItem 5 in the investment weights of holdings relative to the benchmark index.

   Fund Y is considered -Select-an actively managed concentrated stock-picking funda closet (or enhanced) index funda passive index fundItem 6 because, it is -Select-lessmoreItem 7 concentrated than the benchmark and has -Select-fewermoreItem 8 holdings and -Select-biggersmallerItem 9 investment positions.

   Fund Z is considered -Select-an actively managed concentrated stock-picking funda closet (or enhanced) index funda passive index fundItem 10 because its security holdings come closer to matching the benchmark, -Select-in number of those holdingsin the investment weights of those holdingsboth in number of holdings and the investment weights of those holdingsItem 11 .