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Problem 11-03

Consider the following trading and performance data for four different equity mutual funds:

	Fund W	Fund X	Fund Y	Fund Z
Assets under Management,	$299.8		$652.2		$1,296.3		$5,558.0
Avg. for Past 12 months (mil)
Security Sales,	$40.4		$569.4		$1,462.8		$428.9
Past 12 months (mil)
Expense Ratio	0.32%		0.69%		1.14%		0.27%
Pretax Return, 3-year avg.	9.81%		10.90%		10.48%		9.84%
Tax-adjusted Return, 3-year avg.	8.90%		8.78%		9.46%		9.48%

Calculate the portfolio turnover ratio for each fund. Do not round intermediate calculations. Round your answers to two decimal places.

Fund W: %

Fund X: %

Fund Y: %

Fund Z: %

Which two funds are most likely to be actively managed and which two are most likely passive funds?

-Select-Funds W and XFunds W and YFunds W and ZFunds X and YFunds X and ZFunds Y and ZItem 5 are most likely passively managed portfolios; -Select-Funds W and XFunds W and YFunds W and ZFunds X and YFunds X and ZFunds Y and ZItem 6 are most likely to be actively managed.

Calculate the tax cost ratio for each fund. Do not round intermediate calculations. Round your answers to two decimal places.

Fund W: %

Fund X: %

Fund Y: %

Fund Z: %

Which funds were the most and least tax efficient in the operations?

-Select-Funds Z and WFunds Z and XFunds Z and YFunds W and XFunds W and YFunds X and YItem 11 were the most tax efficient and -Select-Funds Z and WFunds Z and XFunds Z and YFunds W and XFunds W and YFunds X and YItem 12 were the least tax efficient.