Question

In Appendix B you will find performance data for four mutual funds. Rank the funds according to performance. Detail any concerns you have about the rankings. If you had to choose one of the funds to invest in, which would it be and why?

Appendix B: Fund Performance Metrics

Manager:	ArrowMark	Conestoga	Elk Creek	Stephens
Assets Under Management (AUM) ($M)	$1,237	$1,851	$1,235	$1,861
# Securities	110	48	98	109
Alpha	4.06	2.08	-1.44	-2.82
Beta	0.95	0.85	1.04	0.84
Std. Dev. (3 year)	12.99	11.99	14.05	11.42
Sharpe Ratio (3-year)	0.80	0.64	0.37	0.22

Annualized Return Summary (Net of Fees)

Manager Name	1 Year	3 Years	5 Years	10 Years
ArrowMark	27.4%	10.6%	-	-
Conestoga	23.7%	7.8%	12.4%	9.5%
Elk Creek	25.1%	5.4%	11.9%	-
Stephens	21.3%	2.7%	8.8%	7.5%
Russell 2000 Index	23.0%	6.7%	12.1%	8.1%

Answer 1

I can go for arrow mark mutual fund scheme following are the reasons

1) we also see alpha that it is good that show that we have excessive returns on our investment as compared to their peers

2) and we also choose this because by bearing small risk more we can earn a lot

3) talking about standard deviation we seen that it is low standard deviation as compression to other peers and this also shows that the volatility is low and it's past returns ranged between -2.39 to 15.38 that is good as it have less negative returns ranged

4) and the last and important reasons for selecting this scheme is that the Sharpe ratio ia high among the all security that means that I earn excessive portfolio returns over the Rf I.e risk free rate