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,	$286.6		$665.4		$1,277.6		$5,564.6
Avg. for Past 12 months (mil)
Security Sales,	$41.2		$573.8		$1,467.6		$424.5
Past 12 months (mil)
Expense Ratio	0.34%		0.74%		1.20%		0.23%
Pretax Return, 3-year avg.	9.77%		10.30%		10.28%		9.70%
Tax-adjusted Return, 3-year avg.	9.24%		8.84%		9.10%		9.24%

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.