The trading and performance data for five different mutual funds are provided below:

	Fund 1	Fund 2	Fund 3	Fund 4	Fund 5
Expense Ratio	0.23%	0.98%	0.45%	0.12%	1.89%
Tax-adjusted Return, 3-year avg	8.78%	8.87%	9.39%	8.10%	9.32%
Pretax Return, 3-year avg.	13.78%	11.98%	10.12%	9.83%	12.56%
Assets under management (Mill)	$400.00	$500.00	$1,200.00	$900.00	$600.00
Security Sales, past 12 months (mil)	$39.00	$300.00	$850.00	$390.00	$400.00

1. Which two funds are most likely to be actively managed and which two funds are most likely to be passive funds? Justify with calculations.

2. Which funds were the most and least tax efficient in the operations? (Use the tax cost ratio and justify.)

3. As a rational investor, which fund will you invest in? Justify.