Question: Problem 11-17 Average Return and Standard Deviation (LO3) In a recent 5-year period, mutual fund manager Diana Sauros produced the following percentage rates of return

Problem 11-17 Average Return and Standard Deviation (LO3)

In a recent 5-year period, mutual fund manager Diana Sauros produced the following percentage rates of return for the Mesozoic Fund. Rates of return on the market index are given for comparison.

1 2 3 4 5
Fund 1.3 +23.5 +41.4 +10.4 +0.4
Market index 0.9 +16.0 +30.9 +11.7 0.7

a. Calculate (a) the average return on both the Fund and the index, and (b) the standard deviation of the returns on each. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

b. Did Ms. Sauros do better or worse than the market index on these measures?

Answer is complete but not entirely correct.

Mesozoic Fund Return Market Portfolio Return
a. Average return 14.88selected answer correct 11.40selected answer correct
Standard deviation 17.82selected answer incorrect 1.16selected answer incorrect
b. Did Ms. Sauros do better or worse than the market index on these measures? Betterselected answer correct

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