Homework SourseThere are a very large number of mutual funds from which an
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 data in BestFunds.xls present the 3-year annualized return, 5-year annualized return, 10-year annualized return, and expense ratio (in %) for the 10 best mutual funds according to the U.S. News & World Report score for large cap value and large cap growth mutual funds. (Data extracted from K. Shinkle, \"The Best Funds for the Long Term, U.S. News & World Report, Summer 2010, pp. 52-56.) Analyze the data and determine whether any differences exist between large cap value and large cap growth mutual funds. (Use the 0.05 level of significance.) Please report the name of the test(s), the test-statistic and critical value of the test(s) you used, your reasoning behind selecting that test(s), and your final conclusions.
| Type | 3-year Return | 5-Year Return | 10-Year Return | Expense Ratio |
| Large Cap Value | 8.9 | 8.5 | 13.6 | 0.93 |
| Large Cap Value | -2.5 | 3.4 | 4.4 | 0.88 |
| Large Cap Value | -2.7 | 3.1 | 3.1 | 0.97 |
| Large Cap Value | 2.2 | 7.7 | 6.1 | 1.32 |
| Large Cap Value | 3.2 | 5.2 | 6.0 | 1.37 |
| Large Cap Value | 4.5 | 4.2 | 5.6 | 1.35 |
| Large Cap Value | 2.1 | 5.3 | 6.5 | 0.94 |
| Large Cap Value | -0.7 | 4.8 | 3.5 | 2.15 |
| Large Cap Value | 1.1 | 4.4 | 6.2 | 1.35 |
| Large Cap Value | 5.0 | 2.9 | 5.6 | 0.80 |
| Large Cap Growth | 1.2 | 3.2 | 3.3 | 0.86 |
| Large Cap Growth | 0.3 | 5.2 | 2.3 | 1.00 |
| Large Cap Growth | 1.2 | 2.4 | 0.5 | 1.35 |
| Large Cap Growth | 2.0 | 7.0 | 3.6 | 0.50 |
| Large Cap Growth | 0.7 | 7.8 | 4.3 | 1.20 |
| Large Cap Growth | -0.2 | 5.4 | 3.0 | 1.01 |
| Large Cap Growth | 2.2 | 6.7 | 0.9 | 1.00 |
| Large Cap Growth | -1.6 | 1.7 | 2.5 | 1.00 |
| Large Cap Growth | -0.5 | 3.7 | 0.9 | 1.09 |
| Large Cap Growth | -1.1 | 3.3 | 2.4 | 0.71 |
Solution
