With over 6500 mutual funds available to investors, industry data show that consumers pay a great deal of attention to the ratings of mutual funds. In spite of this attention, however, much controversy surrounds the various industry approaches to the rating of mutual funds. Many industry rating...

This study examines the Morningstar rating system as a predictor of mutual fund performance for U.S. domestic equit funds. We also compare the predictive abilities of the Morningstar rating system with those of alternative predictors. The results indicate findings that are robust across...

The Treynor index, a well-known, widely-used measure of portfolio performance, is the ratio of the mean excess rate of return of the portfolio to the portfolio's beta. We derive an analytical formula that is designed to yield rigorous confidence intervals on the index. Necessary and sufficient...