The performance claimed by mutual funds is often considerably better than what you would experience if you actually put your money on the line. Table 5.5.11 shows the annual return for internationally diversified bond funds both before adjustment and after subtracting the various expenses, brokerage costs, sales loads, and taxes you might have to pay.
a. Find the standard deviation of these returns both before and after adjustment.
b. After adjustment, are these funds (taken as a group) more homogeneous or less homogeneous? Explain how you reached your conclusion.