Fidelity provides data on the risk and return of its funds at www.fidelity.com. Click on the News

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Fidelity provides data on the risk and return of its funds at www.fidelity.com. Click on the News and Research link, then choose Mutual Funds from the submenu. In the Search and Compare Funds section, search over All Asset Classes. On the next screen, click on Volatility and set the beta slider to 0.75. Select five funds from the resulting list and click Compare. Rank the five funds according to their betas and then according to their standard deviations. (You will have to click on Risk to get more detailed information on each fund.) Do both lists rank the funds in the same order? How would you explain any difference in the rankings? Repeat the exercise to compare five funds that have betas greater than or equal to 1.50. Why might the degree of agreement when ranking funds by beta versus standard deviation differ when using high versus low beta funds?

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Related Book For  answer-question

ISE Investments

ISBN: 9781260571158

12th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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