Stats
StatsUSING STATISTICAL EVALUATION
FOR FUND PURCHASING
ABSTRACT
Fund Purchasing Using Statistics
In the past few years many young people transiting into adulthood have found themselves victim to improper or no teachings on how to handle money, or how to build some kind of future funds. This trend has effected most young people. When talking about stocks and mutual funds, many individuals do not realize that statistics can play a major part in the selection of an asset for the future. This study was to show that statistics can be used to compare mutual funds, to what you want for a return. The mutual funds looked at were only in six sectors of the market.
TABLE OF CONTENTS
ABSTRACT
LIST OF TABLES AND GRAPHS. . . . . . ii
INTRODUCTION . . . . . . . 1
METHODS . . . . . . . . 3
RESULTS OF HOW STATISTICS CAN HELP
BUILD FOR THE FUTURE . . . . . 4
Importance of Saving For the Future . . . . . 4
Process of Evaluation . . . . . . . 4
CONCLUSIONS AND RECOMMENDATIONS . . . 13
LIST OF TABLES AND GRAPHS
Table A. Average, Range and Standard Deviation Comparison. . 4
Table 1. Returns for Conservative fund one and two . . . 7
Graph 1. Returns for Conservative fund one and two . . . 7
Table 2. Returns for Secure fund one and two . . . 8
Graph 2. Returns for Secure fund one and two . . . 8
Table 3. Returns for Moderate fund one and two . . . 9
Graph 3. Returns for Moderate fund one and two . . . 9
Table 4. Returns for Balanced fund one and two . . . 10
Graph 4. Returns for Balanced fund one and two . . . 10
Table 5. Returns for Ambitious fund one and two . . . 11
Graph 5. Returns for Ambitious fund one and two . . . 11
Table 6. Returns for Aggressive fund one and two . . . 12
Graph 6. Returns for Aggressive fund one and two . . . 12
INTRODUCTION
Potential purchases for building future wealth can be done with statistics. Individuals have many things to consider before they invest money, such as how much return they would like to have on a investment, how often they would like their money to double, and how much to invest. These factors help the individuals make an informed decision, about which investment would be best for them. This study was to compare the performance of two funds in six different sectors. Its main purpose was to look at how statistics can best be suited to do this. The six different sectors were selected; two funds were selected from each.
Sectors:
1. Conservative
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
C1 10.4 12.8 18.4 15.0 3.0 8.2 11.3 8.0 13.2 7.3 10.7
C2 10.9 14.0 24.2 15.9 2.5 8.7 13.7 10.2 17.9 8.0 11.6
2. Secure
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
S1 18.2 10.2 23.7 18.9 7.8 12.0 23.0 4.4 21.2 8.0 8.2
S2 16.3 9.3 27.8 19.1 0.5 12.8 15.3 1.4 27.9 2.7 13.1
3. Moderate
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
M1 14.5 10.0 29.7 23.2 11.6 16.0 19.7 0.8 29.5 7.6 7.5
M2 21.9 14.4 27.2 17.6 6.4 15.7 28.2 4.5 27.6 6.6 4.5
4. Balanced
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
B1 29.2 9.2 24.7 17.3 2.3 21.8 22.8 1.4 20.8 7.7 7.5
B2 21.5 8.9 23.2 13.2 7.8 12.7 24.8 2.3 25.6 9.2 11.9
5. Ambitious
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
A1 36.2 6.3 32.4 11.8 2.9 14.7 22.9 3.5 38.6 10.8 15.8
A2 27.3 2.6 33.5 14.7 3.4 15.1 32.8 -6.1 24.1 13.8 25.2
6. Aggressive
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
G1 23.7 7.6 33.4 25.8 5.5 13.3 28.6 6.9 51.5 4.0 -4.1
G2 22.3 0.3 38.3 19.7 6.0 14.1 37.0 -2.1 57.6 6.4 -1.2
METHODS
The methods used were the average, range, and the standard deviation associated with each fund. Assuming that the distribution for each fund was normal, the z-tables were then used to calculate the percentage of time...
To view the complete essay, you be registered.