Define similarities and differences in the funds returns

Reference no: EM131807690

Question: Nicholas Grammas is an investment analyst examining the performance of two mutual funds with Janus Capital Group: The Janus Balanced Fund and the Janus Overseas Fund.

• The Janus Balanced Fund: This "core" fund consists of stocks and bonds and its goal is diversification. It has historically produced solid long-term returns through different market cycles.

• The Janus Overseas Fund: This fund invests in overseas companies based on their individual merits instead of their geography or industry sector.

The following table reports the annual returns (in percent) of these two funds over the past 10 years. These data, labeled Janus Returns, are also available on the text website.

In a report, use the above information to:

1. Describe the similarities and differences in these two funds' returns.

2. Examine whether the risk of one fund is different than the risk of the other fund at the 5% significance level. Discuss the assumptions made for the analysis.

Reference no: EM131807690

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