In a report, use the below information to
1. Describe the similarities and differences in these two funds’ returns.
2. Examine whether the risk of one fund is different from the risk of the other fund at the 5% significance level. Discuss the assumptions made for the analysis.
Nicholas Grammas is an investment analyst examining the performance of two with Janus Capital Group: the Janus Balanced Fund and the Janus Overseas Fund.
- The Janus Balanced Fund (JANBX): This “core” fund consists of and bonds and its goal is diversification. It has historically produced solid long-term returns through different market cycles.
- The Janus Overseas Fund (JAOSX): This fund invests in overseas companies based on their individual merits instead of their geography or industry sector.
The following table reports a portion of the annual returns (in percent) for these two funds from 2000–2016.
