System and method for assigning ratings to mutual funds and other investment funds based on the value of various future and option securities
First Claim
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1. A method for predicting expected returns of a fund, comprising the steps of:
- operating a computer to select a sector corresponding to the fund,operating the computer to identify financial futures corresponding to the sector,operating the computer to calculate an expected return over a time period for the sector based on the financial futures corresponding to the sector,operating the computer to calculate an expected range of future returns for the sector based on prices of options for the futures, andoperating the computer to calculate an expected annual return for the fund based on the expected annualized return for the corresponding sector, the expected range of returns for the corresponding sector, and at least one adjustment factor specific to the fund.
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Abstract
The present invention is a system and method for assigning ratings on mutual funds and other investment funds based on values of financial futures for sectors corresponding to the funds. The method combines information on the historical rates of return and variability in the rates of return of the funds with the expected range of future returns for various asset classes as determined by the pricing of futures. The rating for the funds incorporates the range of expected future returns, the variability of past returns, and the level of risk.
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Citations
9 Claims
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1. A method for predicting expected returns of a fund, comprising the steps of:
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operating a computer to select a sector corresponding to the fund, operating the computer to identify financial futures corresponding to the sector, operating the computer to calculate an expected return over a time period for the sector based on the financial futures corresponding to the sector, operating the computer to calculate an expected range of future returns for the sector based on prices of options for the futures, and operating the computer to calculate an expected annual return for the fund based on the expected annualized return for the corresponding sector, the expected range of returns for the corresponding sector, and at least one adjustment factor specific to the fund. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9)
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Specification