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1 . Calculate the arithmetic and geometric mean for the following mutual fund return series: Fund ABC: 6 % , 8 % , 2 %

1. Calculate the arithmetic and geometric mean for the following mutual fund return series:
Fund ABC: 6%,8%,2%,5%,10%,7.5%
Group of answer choices
Arithmetic: 3.93%/ Geometric: 4.08%
Arithmetic: 4.08%/ Geometric: 3.93%
Arithmetic: 4.08%/ Geometric: 26.03%
Arithmetic: 5.25%/ Geometric: 3.93%
2. You have successfully helped Dan reach retirement with a sound financial plan. Now that he is about to retire you have some concerns about the sequence of returns. Dan feels a 4% withdrawal will work great for his $1.2MM portfolio ($48,000/yr.). If Dan retires with $1.2MM in December, takes a distribution of $48,000 in January and then has a 12% market loss in the first year, what would his new rate of withdrawal be if he continues to take $48,000?
4.81%
4.73%
4.32%
4.55%
3. Run Co. has a dividend this year of $1.15; they plan to grow by 8% per year moving forward. If your client has a 9.5% return target in her Investment Policy Statement, what price would be the highest you could pay for Run Co.?
$82.80
$76.67
$13.38
$12.57
4. Which portfolio provides the best riskadjusted return? (For this question assume the following for all portfolios: Risk Free Rate 4%, R2 is .80, S&P 500 returned 12%)
Fund 1: Mean 10%/ Std. Dev 8%/ Beta 1.20
Fund 2: Mean 12%/ Std. Dev 9%/ Beta 1.20
Fund 3: Mean 15%/ Std. Dev 12.5%/ Beta 1.4
Fund 4: Mean 9%/ Std. Dev 6%/ Beta 0.95

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