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6. (20 marks). George's current portfolio of $2.0 million is invested as follows: Table 1: Summary of George's Current Portfolio George soon expects to receive
6. (20 marks). George's current portfolio of $2.0 million is invested as follows: Table 1: Summary of George's Current Portfolio George soon expects to receive an additional $2.0 million and plans to invest the entire amount in an index fund that best complements the current portfolio. Stephanie is evaluating the four index funds shown in the following table for their ability to produce a portfolio that will meet two criteria relative to the current portfolio: (1) maintain or enhance expected return and (2) maintain or reduce risk. Each fund is invested in an asset class that is not substantially represented in the current portfolio. State which Table 2: Index Fund Characteristics fund she should recommend to George. Justify your choice by describing how your chosen fund best meets both of George's criteria. 6. (20 marks). George's current portfolio of $2.0 million is invested as follows: Table 1: Summary of George's Current Portfolio George soon expects to receive an additional $2.0 million and plans to invest the entire amount in an index fund that best complements the current portfolio. Stephanie is evaluating the four index funds shown in the following table for their ability to produce a portfolio that will meet two criteria relative to the current portfolio: (1) maintain or enhance expected return and (2) maintain or reduce risk. Each fund is invested in an asset class that is not substantially represented in the current portfolio. State which Table 2: Index Fund Characteristics fund she should recommend to George. Justify your choice by describing how your chosen fund best meets both of George's criteria
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