Abstract
The objective is to determine the usefulness of the Morningstar category ratings and star ratings as a composite risk/return measure of fund performance for small-cap mutual funds. Using the Tukey-Kramer method, analysis of the funds is done to determine whether investment style and performance variable are associated with differences in Morningstar's star ratings and category ratings. Although the category rating is preferred to the star rating, neither captures the entirety of the Sharpe Index.
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