Question

A mutual fund rating agency ranks a​ fund's performance by using one to five stars. A​ one-star mutual fund is in the bottom​ 20% of its investment​ class; a​ five-star mutual fund is in the top​ 20% of its investment class. Interpret the meaning of a​ four-star mutual fund.

Answer 1

Each star has a 20% difference.

A four star rating would be above the bottom 60% ( 1, 2 and 3 stars) but be below the top 20%. (5 stars).