Question: Mutual funds provide the individual investor with a convenient medium for diversification. A mutual fund spreads its investment over numerous securities, so that individuals who purchase a share in a mutual fund are investing in a highly diversified portfolio, something they could not achieve on their own with limited funds. Mutual funds tailor their diversification strategies to different investor groups. There are capital-growth funds, current income funds, equity funds, bond funds and so on. The table below lists the level of return over five years for a sample of investors for various categories of mutual funds.

a) Determine at a = 0.05 if there is evidence of a significant relationship between the level of return and the type of mutual fund.

b) What does this finding say about mutual fund investment?