Product Overview

The owner of a small financial services firm is evaluating the performance of four funds to determine whether to offer them to his clients. The funds span a variety of objectives and include a recently initiated fund. The case explores issues related to the evaluation of mutual fund performance, including the selection of benchmarks and the effect of fees. The case provides a natural and compelling context in which to discuss market efficiency.

Learning Objectives

Students must adjust returns for risk and fees as well as evaluate the appropriateness of given benchmarks. Reaching a conclusion about the funds, in particular one with a short history, will challenge students to form and defend a position on market efficiency.