Problem 11-08 Shown below are the investment weights for the securities held in four different portfolios: three mutual funds and the benchmark index that each of those funds uses. % Security Investment Weight: Security Benchmark Index Fund X Fund Y Fund Z 1 9% 2 9 3 4 5 6 7 8 9 10 9 13% 38% 8% 15 0 10 7 15 8 5 0 10 20 8 12 0 10 9 26 10 13 25 10 10 0 8 0 10 8 a. Calculate the active share (AS) measure for Fund X, Fund Y, and Fund Z relative to the benchmark index. Do not round intermediate calculations. Round your answers to one decimal place. Fund X: Fund Y: % % Fund Z: % b. Using active share calculations above, indicate which fund is the most likely to be considered: (1) a passive index fund, (ii) a closet (or enhanced) index fund, and (iii) an
Problem 11-08 Shown below are the investment weights for the securities held in four different portfolios: three mutual funds and the benchmark index that each of those funds uses. % Security Investment Weight: Security Benchmark Index Fund X Fund Y Fund Z 1 9% 2 9 3 4 5 6 7 8 9 10 9 13% 38% 8% 15 0 10 7 15 8 5 0 10 20 8 12 0 10 9 26 10 13 25 10 10 0 8 0 10 8 a. Calculate the active share (AS) measure for Fund X, Fund Y, and Fund Z relative to the benchmark index. Do not round intermediate calculations. Round your answers to one decimal place. Fund X: Fund Y: % % Fund Z: % b. Using active share calculations above, indicate which fund is the most likely to be considered: (1) a passive index fund, (ii) a closet (or enhanced) index fund, and (iii) an
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Problem 11-08
Shown below are the investment weights for the securities held in four different portfolios: three mutual funds and the benchmark index that each of those funds uses.
% Security Investment Weight:
Security Benchmark Index Fund X Fund Y Fund Z
1
9%
2
9
3
4
5
6
7
8
9
10
9
13%
38%
8%
15
0
10
7
15
8
5
0
10
20
8
12
0
10
9
26
10
13
25
10
10
0
8
0
10
8
a. Calculate the active share (AS) measure for Fund X, Fund Y, and Fund Z relative to the benchmark index. Do not round intermediate calculations. Round your answers to one
decimal place.
Fund X:
Fund Y:
%
%
Fund Z:
%
b. Using active share calculations above, indicate which fund is the most likely to be considered: (1) a passive index fund, (ii) a closet (or enhanced) index fund, and (iii) an
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