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Question: The “expense ratio” is a measure of

The “expense ratio” is a measure of the cost of managing the portfolio. Investors prefer a low expense ratio, all else equal. Below are expense ratios for 23 randomly chosen stock funds and 21 randomly chosen bond funds. (a) Calculate the mean and median for each sample. (b) Calculate the standard deviation and coefficient of variation for each sample. (c) Which type of fund has more variability? Explain.
The “expense ratio” is a measure of the cost of managing the portfolio. Investors prefer a low expense ratio, all else equal. Below are expense ratios for 23 randomly chosen stock funds and 21 randomly chosen bond funds. (a) Calculate the mean and median for each sample. (b) Calculate the standard deviation and coefficient of variation for each sample. (c) Which type of fund has more variability? Explain.





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23 Stock Funds 1.12 1.44 1.27 1.75 0.99 1.45 1.19 1.22 0.99 3.18 1.21 1.89 0.60 2.10 0.73 0.90 1.79 1.35 1.08 1.28 1.20 1.68 0.15 21 Bond Funds 1.96 0.51 1.12 0.64 0.69 0.20 1.44 0.68 0.40 0.94 0.75 1.77 0.93 1.25 0.85 0.99 0.95 0.35 0.64 0.41 0.90



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> Shower temperature at the Oxnard Health Club showers is regulated automatically. The heater kicks in when the temperature falls to 998F and shuts off when the temperature reaches 1078F. Water temperature then falls slowly until the heater kicks in again.

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