Case study Memo Example | Topics and Well Written Essays - 250 words

Memo - Case Study Example The analysis used the average return (AR) as the dependent variable and four other independent variables two of which were converted to dummy variables in order to capture their effect on mutual funds returns. There were forty-five funds analyzed with an average Net Asset Value of 28%, an average ER of 0.9%, and an average AR of 2.4%. The value of NAV after the first regression disqualified it as being statistically significant in influencing the variability of AR. After the second regression, which excluded NAV, the six variables had a 95% confidence interval and thus were statistically significant in explaining the variability of Average Returns of a mutual fund. Using the six independent variables, an equation that explains the following was obtained, and it helped to explain the following: The above results point out that the company should emphasize on the six funds that have a significant effect on mutual funds and that the most suitable found to invest in is the four star fund which has the highest amount of