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1. Ayasha, age 30 , is beginning to contenplate her financial future. Right now, she lives in a latge city where she rents a one-bedroom

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1. Ayasha, age 30 , is beginning to contenplate her financial future. Right now, she lives in a latge city where she rents a one-bedroom apartment. Although she loves the excitement of the city, she knows that someday she would like to move to the country and live in a farmhouse. Her goal is to begin saving for this objective right away. Ayasha has identified 3 possible portfolios that might be appropriate chor 7 as she begins investing to reach her objective. Each portfolio consists of the following focks bonds and cash assets. A. Calculate the weighted average rate of return for each portfolio assuming that the average rate of return of each asset is as follows: stocks 9%, bonds 4%, cash assets 2%. (Hint: multiply the allocation percentage by the rate of return and then add them all together to determine the weighted average for the asset.) 3 pts B. Which portfolio has the greatest level of uncertainty associated with the retums? How can you tell? 2 pts C. If Ayasha's risk tolerance is below average and she has a long time horizon (15 years), which of the three portfolios would be most appropriate for her and why? 2 pts D. If Ayashia's time horizon for goal achicvement is four years, which portfolio would be most appropriate and why? 2 pts: E. What type of risk does. Ayasha face if she invests in portfolio 3 ? I pts

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