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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,	288.8		653.3		1,298.5		5,561.3
Average for Past 12 months ($ Million)
Security Sales,	37.2		570.5		1,458.0		436.6
Past 12 months ($ Million)
Expense Ratio (%)	0.30		0.67		1.14		0.24
Pretax Return, 3-year Average (%)	9.73		10.40		10.46		9.82
Tax-adjusted Return, 3-year Average (%)	9.36		8.88		9.66		9.56

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 W Funds Z and X Funds Z and Y Funds W and X Funds W and Y Funds X and Y Item 11 were the most tax efficient and -Select-Funds Z and W Funds Z and X Funds Z and Y Funds W and X Funds W and Y Funds X and Y Item 12 were the least tax efficient.