There are a very large number of mutual funds from which an investor can choose. Each mutual fund has its own mix of different types of investments. The file BestFunds1 contains the one-year return percentage and the three-year annualized return percentage for the ten best short-term bond and long-term bond funds according to the U.S. News & World Report score. (Data extracted from money.usnews.com/mutual-funds/rankings.)
a. Construct bullet graphs of the one-year returns and the three-year returns. For the purposes of comparison, consider a return below 5% as low-performing, a return between 5 and 10% as mediumperforming, and a return above 10% as high-performing.
b. Why would you not want to construct a gauge for each bond fund?
c. What conclusions can you reach about the one-year and threeyear return percentages for the short-term bond and long-term bond funds?