$1.$ Calculate the arithmetic and geometric mean for the following mutual fund return series:

Fund ABC: $6\%,8\%,2\%,5\%,10\%,7\mathrm{.}5\%$

Group of answer choices

Arithmetic: $3\mathrm{.}93\%/$ Geometric: $4\mathrm{.}08\%$

Arithmetic: $4\mathrm{.}08\%/$ Geometric: $3\mathrm{.}93\%$

Arithmetic: $4\mathrm{.}08\%/$ Geometric: $26\mathrm{.}03\%$

Arithmetic: $5\mathrm{.}25\%/$ Geometric: $3\mathrm{.}93\%$

$2.$ 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 $$1\mathrm{.}2$MM portfolio $($$$48,000/$yr$.).$ If Dan retires with $$1\mathrm{.}2$MM in December, takes a distribution of $$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?$

$4\mathrm{.}81\%$

$4\mathrm{.}73\%$

$4\mathrm{.}32\%$

$4\mathrm{.}55\%$

$3.$ Run Co$.$ has a dividend this year of $$1\mathrm{.}15$; they plan to grow by $8\%$ per year moving forward. If your client has a $9\mathrm{.}5\%$ return target in her Investment Policy Statement, what price would be the highest you could pay for Run Co$.?$

$$82\mathrm{.}80$

$$76\mathrm{.}67$

$$13\mathrm{.}38$

$$12\mathrm{.}57$

$4.$ Which portfolio provides the best risk$$adjusted return? $($For this question assume the following for all portfolios: Risk Free Rate $4\%,$ R$2$ is $\mathrm{.}80,$ S&P $500$ returned $12\%)$

Fund $1$: Mean $10\%/$ Std$.$ Dev $8\%/$ Beta $1\mathrm{.}20$

Fund $2$: Mean $12\%/$ Std$.$ Dev $9\%/$ Beta $1\mathrm{.}20$

Fund $3$: Mean $15\%/$ Std$.$ Dev $12\mathrm{.}5\%/$ Beta $1\mathrm{.}4$

Fund $4$: Mean $9\%/$ Std$.$ Dev $6\%/$ Beta $0\mathrm{.}95$