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A BETTER LOOK AT YOUR FUNDS

BUSINESS WEEK now categorizes U.S. diversified equity funds in two ways: by the median market capitalization of the stocks it owns and by the relative valuation or ''style'' of those stocks. It's a system developed by Morningstar Inc.

Funds whose stocks have a median market cap of $5 billion or more are considered large-cap funds, $1 billion or less is small-cap, and those in between, mid-cap. To determine each fund's style, the average price-earnings ratios and price-to-book-ratios are calculated and compared with the S&P 500. Those with significantly lower-than-average p-e's and p-b's are ''value'' funds, those higher than average ''growth,'' and those in the middle ''blend.''



Updated June 15, 1997 by bwwebmaster
Copyright 1997, Bloomberg L.P.
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