Go to www.morningstar.com and select the Funds tab. When the Mutual Funds page opens, scroll down to the Find a Fund (Fund Screener) section. Get a list of the funds that satisfy specifications of your choosing. a. Choose three of the listed funds with different investment styles. (e.g. small cap, global, precious metals, emerging markets). For each fund, click on it name to get a snapshot report, then click on the link for risk measures on the left menu. b. Identify each fund’s beta, alpha, and r-squared coefficients. Compare both the standard index and the best-fit index. c. Given the risk levels of the funds, which of them outperformed the market? Which fund had the highest level of risk-adjust performance? Solution Conestoga Small Cap Fund Investors Class CCASX Morningstar Risk & Rating Statistics CCASX 01/31/2016 3-Year 5-Year 10-Year Rating, risk, and return values are relative to each fund’s Morningstar Category. Click here to see our methodology. Morningstar Return CCASX Above Average Above Average Above Average Morningstar Risk CCASX Above Average Average Low Morningstar Rating CCASX # of Funds in Category 660 589 424 MPT Statistics CCASX 3-Year 3-Year Trailing Index R-Squared Beta Alpha Treynor Ratio Currency 01/31/2016 vs. Best-Fit Index CCASX Russell 2000 TR USD 86.40 1.04 2.63 — USD vs. Standard Index CCASX S&P 500 TR USD 48.88 1.07 -2.13 8.34 USD Category: SG S&P 500 TR USD 57.02 1.06 -4.75 5.94 USD Volatility Measures CCASX 3-Year 3-Year Trailing Standard Deviation Return Sharpe Ratio Sortino Ratio Bear Market Percentile Rank 01/31/2016 CCASX 16.68 8.95 0.59 0.99 — S&P 500 TR USD 11.98 10.91 0.92 1.60 — Category: SG 17.00 7.03 0.49 0.75 — Upside & Downside Capture Ratio CCASX 1-Year 3-Year 5-Year 10-Year 15-Year All ratios calculated vs. S&P 500 TR USD 01/31/2016 CCASX 100.80 89.11 94.15 107.99 96.78 105.41 102.62 100.34 — — Category: SG 79.98 128.58 87.66 118.43 101.05 134.33 109.99 124.96 — — S&P 500 index data: S&P 500 Copyright © 2016 Currency is displayed in USD unless otherwise noted. Italics indicate Extended Performance. Extended performance is an estimate based on the performance of the fund\'s oldest share class, adjusted for fees. American Century Heritage Fund A Class Load Waived Investment Style Mid Growth Morningstar Risk & Rating Statistics ATHAX.LW 01/31/2016 3-Year 5-Year 10-Year Rating, risk, and return values are relative to each fund’s Morningstar Category. Click here to see our methodology. Morningstar Return ATHAX.LW Average Average Above Average Morningstar Risk ATHAX.LW Average Average Above Average Morningstar Rating ATHAX.LW # of Funds in Category 646 580 433 MPT Statistics ATHAX.LW 3-Year 3-Year Trailing Index R-Squared Beta Alpha Treynor Ratio Currency 01/31/2016 vs. Best-Fit Index ATHAX.LW Morningstar US Mid Growth TR USD 94.01 0.98 0.07 — USD vs. Standard Index ATHAX.LW S&P 500 TR USD 74.33 0.99 -3.02 7.72 USD Category: MG S&P 500 TR USD 73.60 1.01 -3.52 7.34 USD Volatility Measures ATHAX.LW 3-Year.

1. Go to www.morningstar.com and select the Funds tab. When the Mutual Funds page opens,
scroll down to the Find a Fund (Fund Screener) section. Get a list of the funds that satisfy
specifications of your choosing.
a. Choose three of the listed funds with different investment styles. (e.g. small cap, global,
precious metals, emerging markets). For each fund, click on it name to get a snapshot report,
then click on the link for risk measures on the left menu.
b. Identify each fund’s beta, alpha, and r-squared coefficients. Compare both the standard index
and the best-fit index.
c. Given the risk levels of the funds, which of them outperformed the market? Which fund had
the highest level of risk-adjust performance?
Solution
Conestoga Small Cap Fund Investors Class
CCASX
Morningstar Risk & Rating Statistics
CCASX
01/31/2016
3-Year
5-Year
10-Year
Rating, risk, and return values are relative to each fund’s Morningstar Category. Click here to
see our methodology.
Morningstar Return
CCASX
Above Average
Above Average
Above Average
Morningstar Risk
CCASX
Above Average
Average
Low
Morningstar Rating
CCASX

2. # of Funds in Category
660
589
424
MPT Statistics
CCASX
3-Year
3-Year Trailing
Index
R-Squared
Beta
Alpha
Treynor Ratio
Currency
01/31/2016
vs. Best-Fit Index
CCASX
Russell 2000 TR USD
86.40
1.04
2.63
—
USD
vs. Standard Index
CCASX
S&P 500 TR USD
48.88
1.07
-2.13
8.34
USD
Category: SG
S&P 500 TR USD
57.02
1.06
-4.75

3. 5.94
USD
Volatility Measures
CCASX
3-Year
3-Year Trailing
Standard
Deviation
Return
Sharpe Ratio
Sortino Ratio
Bear Market
Percentile Rank
01/31/2016
CCASX
16.68
8.95
0.59
0.99
—
S&P 500 TR USD
11.98
10.91
0.92
1.60
—
Category: SG
17.00
7.03
0.49
0.75
—
Upside & Downside Capture Ratio
CCASX
1-Year
3-Year

4. 5-Year
10-Year
15-Year
All ratios calculated vs. S&P 500 TR USD
01/31/2016
CCASX
100.80
89.11
94.15
107.99
96.78
105.41
102.62
100.34
—
—
Category: SG
79.98
128.58
87.66
118.43
101.05
134.33
109.99
124.96
—
—
S&P 500 index data: S&P 500 Copyright © 2016
Currency is displayed in USD unless otherwise noted.
Italics indicate Extended Performance. Extended performance is an estimate based on the
performance of the fund's oldest share class, adjusted for fees.
American Century Heritage Fund A Class Load Waived
Investment Style
Mid Growth
Morningstar Risk & Rating Statistics
ATHAX.LW

5. 01/31/2016
3-Year
5-Year
10-Year
Rating, risk, and return values are relative to each fund’s Morningstar Category. Click here to
see our methodology.
Morningstar Return
ATHAX.LW
Average
Average
Above Average
Morningstar Risk
ATHAX.LW
Average
Average
Above Average
Morningstar Rating
ATHAX.LW
# of Funds in Category
646
580
433
MPT Statistics
ATHAX.LW
3-Year
3-Year Trailing
Index
R-Squared
Beta
Alpha
Treynor Ratio
Currency
01/31/2016
vs. Best-Fit Index
ATHAX.LW
Morningstar US Mid Growth TR USD

6. 94.01
0.98
0.07
—
USD
vs. Standard Index
ATHAX.LW
S&P 500 TR USD
74.33
0.99
-3.02
7.72
USD
Category: MG
S&P 500 TR USD
73.60
1.01
-3.52
7.34
USD
Volatility Measures
ATHAX.LW
3-Year
3-Year Trailing
Standard
Deviation
Return
Sharpe Ratio
Sortino Ratio
Bear Market
Percentile Rank
01/31/2016
ATHAX.LW
12.59
7.72
0.65

7. 1.08
—
Russell Mid Cap Growth TR USD
12.16
9.69
0.82
1.40
—
Category: MG
12.99
7.38
0.62
1.01
—
Upside & Downside Capture Ratio
ATHAX.LW
1-Year
3-Year
5-Year
10-Year
15-Year
All ratios calculated vs. S&P 500 TR USD.
01/31/2016
ATHAX.LW
75.81
107.82
82.43
95.59
91.24
112.94
112.84
109.77
113.02
107.35
Category: MG
79.99

8. 118.10
88.03
111.21
95.78
121.37
104.99
114.54
113.63
121.45
Russell Mid Cap Growth TR USD
82.13
112.84
96.11
105.64
101.91
115.04
110.78
113.02
123.77
125.58
S&P 500 index data: S&P 500 Copyright © 2016
Currency is displayed in USD unless otherwise noted.
Italics indicate Extended Performance. Extended performance is an estimate based on the
performance of the fund's oldest share class, adjusted for fees.
ClearBridge Large Cap Growth A LW
SBLGX.lw
Investment Style
Large Growth
Morningstar Risk & Rating Statistics
SBLGX.LW
01/31/2016
3-Year
5-Year
10-Year
Rating, risk, and return values are relative to each fund’s Morningstar Category.
Morningstar Return

9. SBLGX.LW
High
High
Above Average
Morningstar Risk
SBLGX.LW
Below Average
Below Average
Average
Morningstar Rating
SBLGX.LW
# of Funds in Category
1546
1325
936
MPT Statistics
SBLGX.LW
3-Year
3-Year Trailing
Index
R-Squared
Beta
Alpha
Treynor Ratio
Currency
01/31/2016
vs. Best-Fit Index
SBLGX.LW
Russell 3000 Growth TR USD
95.55
0.97
2.14
—
USD
vs. Standard Index
SBLGX.LW

10. S&P 500 TR USD
92.00
1.00
2.92
14.45
USD
Category: LG
S&P 500 TR USD
85.45
1.04
-0.84
10.29
USD
Volatility Measures
SBLGX.LW
3-Year
3-Year Trailing
Standard
Deviation
Return
Sharpe Ratio
Sortino Ratio
Bear Market
Percentile Rank
01/31/2016
SBLGX.LW
11.45
14.56
1.24
2.48
—
S&P 500 TR USD
10.94
11.30
1.03
1.85

11. —
Russell 1000 Growth TR USD
11.42
13.02
1.13
2.18
—
Category: LG
12.35
10.70
0.89
1.57
—
Upside & Downside Capture Ratio
SBLGX.LW
1-Year
3-Year
5-Year
10-Year
15-Year
All ratios calculated vs. S&P 500 TR USD. 01/31/2016
SBLGX.LW
120.77
89.30
105.67
84.87
105.18
93.63
100.67
96.84
104.51
104.91
Category: LG
103.90
110.72
97.32

12. 100.44
98.79
109.53
100.07
105.06
102.10
112.49
Russell 1000 Growth TR USD
110.76
99.78
104.31
94.47
101.21
96.48
102.46
96.66
102.74
108.12
S&P 500 index data: S&P 500 Copyright © 2016
Currency is displayed in USD unless otherwise noted.
Italics indicate Extended Performance. Extended performance is an estimate based on the
performance of the fund's oldest share class, adjusted for fees.
01/31/2016
3-Year
5-Year
10-Year
Rating, risk, and return values are relative to each fund’s Morningstar Category. Click here to
see our methodology.
Morningstar Return
CCASX
Above Average
Above Average
Above Average
Morningstar Risk
CCASX
Above Average

13. Average
Low
Morningstar Rating
CCASX
# of Funds in Category
660
589
424