Chapter 3 Case Problem Descriptive Statistics: Numerical Measures

Financial advisors are continually assessing whether the S&P Index Funds are the best choice for the long run. Many mutual funds can outperform the S&P 500 Index for several quarters, but over a five-year period the S&P 500 is hard to beat. Consider the data listed below for several mutual funds with large asset size. The performance listed is for the first half of 2011, the second quarter of 2011, and for the 5-year period ending on July 1, 2011.

Mutual Fund / Percent Return 1st Half 2011 / Percent Return 2nd Qtr 2011 / Percent Return Past 5 yrs / Type of Fund
Fidelity Magellan Fund (G) / 18.1 / 3.4 / 142 / G
Vanguard Index 500 (SP) / 17.7 / 3.3 / 181 / SP
Washington Mutual Invest (GI) / 12.6 / 0.3 / 165 / GI
Investment Co of America (GI) / 13.1 / 1.6 / 145 / GI
Fidelity Growth & Income (GI) / 16.1 / 3 / 169 / GI
Fidelity Contrafund (G) / 17.3 / 4.5 / 153 / G
Vanguard Windsor II (GI) / 14.8 / 1.8 / 174 / GI
Amer Cent TC Ultra Inv (G) / 24 / 7 / 147 / G
Fidelity Puritan (B) / 10.8 / 2.6 / 107 / IF
Fidelity Equity-Income (EI) / 11.3 / -0.1 / 151 / IF
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Scudder Growth & Income (GI) / 9.9 / -2.7 / 154 / GI

Download the complete data set from the course website.

Create a Managerial Report summarizing and analyzing the data set.

1.  Construct a descriptive summary for each variable in the data set.

2.  Find the mean of the mutual funds excluding the Vanguard Index 500 (SP) and the Fidelity Spartan US Eq Index (SP) for each of the time periods. How do these averages compare to the mean for the SP funds (Vanguard Index 500 (SP) and the Fidelity Spartan US Eq Index (SP))?

3.  Find the median of the mutual funds excluding the Vanguard Index 500 (SP) and the Fidelity Spartan US Eq Index (SP) for each of the time periods. How do these medians compare to the means found in question #2?

4.  Create descriptive statistics tables for each of the types of funds? Which types of funds (if any) out performed the Index funds (Vanguard Index 500 (SP) and the Fidelity Spartan US Eq Index (SP)) for each of the time periods?

5.  Which types of funds (if any) performed the best and worst for each of the time periods?

6.  Identify which type of fund demonstrated the most risk in each time period? Identify which type of fund demonstrated the least risk in each time period?