Anonymous
timer Asked: Apr 17th, 2020

Question Description

Instructions

You have just received an inheritance of $10,000 and you decide that you should invest the money rather than blow it on frivolous items. You have decided that you will invest the money in one of two types of mutual funds. The first type that you are considering follows a large-value approach to investing. This means that the mutual fund invests only in large, established companies that are considered to be a good bargain. The second type following a large-growth approach to investing. This means that the mutual fund invests in large companies that are experiencing solid revenue growth. To make an informed decision, you decide to reach the rate of return for the past 3 years for each type of mutual fund. The mutual fund must have a Morningstar rating of four or five stars.

The Morningstar mutual-fund rating system ranks mutual funds, using one to five stars. The stars divide the mutual-fund performances into quintiles: that is, a mutual fund with a one-star rating is in the bottom 20% of mutual funds in its category, a mutual fund with two-stars is in between the 21st and 40th percentile, and so on. These data can be found at www.morningstar.com (Links to an external site.) or screen.yahoo.com/funds.html (Links to an external site.)

  1. Obtain a random sample of at least 15 mutual funds from each investment category. Determine the 3 years rate of return for each fund.
  2. Obtain a 95% confidence interval for the difference between the mean rates of return. Interpret the interval.

You are going to write a report detailing which investment category seems superior.

  • The report contains 4-5 paragraphs in Microsoft Word (.doc or .docx) format with supporting data supporting your conclusion.
  • Attach the Excel sheet used for the primary data source.
  • You’ll submit both the Word document and the Excel file.

Submission

This assignment requires a file upload submission (Links to an external site.). After you have reviewed the assignment instructions and rubric, as applicable, complete your submission by selecting the Submit Assignment button next to the assignment title.

Rubric

Project Rubric

Project Rubric

CriteriaRatingsPts

This criterion is linked to a Learning OutcomeContent

30.0 to >26.0 pts

Exemplary

All required elements are fully addressed, easily identified, and integrated into the assignment at the highest level. All key facts are clearly identified and completely addressed.

26.0 to >17.0 pts

Meets Expectations

All required elements are addressed and identified. Several key facts are identified and completely addressed.

17.0 to >9.0 pts

Developing

Required elements are addressed, but further elaboration is needed. A few key facts are identified and addressed.

9.0 to >0.0 pts

Novice

Few of the required elements are addressed. Little or no elaboration present.

0.0 pts

Not Acceptable

Assignment not submitted, submitted late OR contains plagiarized content.

30.0 pts

This criterion is linked to a Learning OutcomeData Source

30.0 to >26.0 pts

Exemplary

Original data provided and summarized in appropriate tabular form and is presented in a neat and accurate way graphically or numerically

26.0 to >17.0 pts

Meets Expectations

Original data provided and summarized in tabular form, but with a minor error in tabulation or computation or presentation.

17.0 to >9.0 pts

Developing

Original data is provided, with quite a few errors when summarizing data either graphically or numerically or data is not appropriately tabulated.

9.0 to >0.0 pts

Novice

Original data is provided, tabulated and summarized but with some major errors.

0.0 pts

Not Acceptable

Original data is not provided.

30.0 pts

This criterion is linked to a Learning OutcomeTechnical

40.0 to >34.0 pts

Exemplary

Demonstrates excellent problem solving competency using mathematics, quantitative reasoning and statistical analysis and methods. All relevant statistics reported and correctly interpreted. Composition is structured logically, focused, well organized, and flows well.

34.0 to >27.0 pts

Meets Expectations

Demonstrates good problem solving competency using mathematics, quantitative reasoning and statistical analysis and methods.. All relevant statistics reported and correctly interpreted. Composition is structured logically, focused, organized, yet minor errors in format exist.

27.0 to >17.0 pts

Developing

Demonstrates inadequate problem solving competency using mathematics, quantitative reasoning and statistical analysis and methods.. Most of relevant statistics reported and correctly interpreted. Composition is, generally, structured logically, focused, organized, and flows well with but a few errors in format exist.

17.0 to >4.0 pts

Novice

Demonstrates poor problem solving competency using mathematics, quantitative reasoning and statistical analysis and methods.. Most of relevant statistics reported yet incorrectly interpreted. Composition is, generally, structured logically, focused, organized, but major errors in format exist.

4.0 to >0 pts

Not Acceptable

Confusing explanation of statistical concepts.

40.0 pts

This criterion is linked to a Learning OutcomeData Interpretation

30.0 to >26.0 pts

Exemplary

Thorough and accurate interpretation of the data

26.0 to >17.0 pts

Meets Expectations

Correct and good interpretation of the data.

17.0 to >9.0 pts

Developing

Correct and good interpretation of the data, except for minor errors or omissions.

9.0 to >0.0 pts

Novice

Interpretation of the meaning of the data is provided, but with some major errors.

0.0 pts

Not Acceptable

No data interpretation provided

30.0 pts

This criterion is linked to a Learning OutcomeReport Writing

30.0 to >26.0 pts

Exemplary

Follows APA writing style and basic rules of formal English grammar and written essay style. Communicates in a cohesive, logical style.

26.0 to >19.0 pts

Meets Expectations

Mostly follows APA writing style and basic rules of formal English grammar and written essay style. Mostly communicates in a cohesive, logical style.

19.0 to >12.0 pts

Developing

APA writing style and basic rules of formal English grammar and written essay style are followed, but with minor errors. Mostly communicates in a cohesive, logical style though at times ideas are unclear and confusing.

12.0 to >5.0 pts

Novice

APA writing style and basic rules of formal English grammar and written essay style are followed, but with major errors. Report is not communicated in a cohesive, logical style. Ideas are unclear and confusing.

5.0 to >0 pts

Not Acceptable

Does not follow APA writing style and basic rules of formal English grammar and written essay style.

30.0 pts

Total Points: 160.0

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