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1. 2. $36 + $30/(1 + r) = $2/(1 + r) + $4/(1 + r)2 + $72.90/(1 + r)2; r = 12.35% 3. $50 +

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2. $36 + $30/(1 + r) = $2/(1 + r) + $4/(1 + r)2 + $72.90/(1 + r)2; r = 12.35%

3. $50 + $72/(1 + r) = $1/(1 + r) + $2/(1 + r)2 + $134.40/(1 + r)2; r = 8.78%.

CAN YOU PLEASE SHOW ALL STEP, PLEASE STEP BY STEP. Thanks

63) In a particular year, Aggie Mutual Fund earned a return of 15% by making the following investments in the following asset classes: Bonds Stocks Weight 10% 90% Return 6% 16% The return on a bogey portfolio was 10%, calculated as follows: Bonds (Lehman Brothers Index) Stocks (S&P 500 Index) Weight 50% 50% Return 5% 15% The contribution of selection within markets to total excess return was A) 1% B) 3%. C) 4%. D) 5%. E) 6% Answer: A Explanation: See table below. Xs Mkt. Equity Bond P'folio Perform Index Perform 16% 15% 6% 5% Perform P'folio Wt. Contrib. 1.0% 0.9 0.9 1.0% 0.1 0.1 1.0

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