a) Calculate wealth relative ratio and geometric mean for the following data. Show your

calculations.

Beginning Value ROR

1 $ 100,000 12%

2 -3%

3 zero%

4 9%

The geometric mean is

The wealth relative ratio is

b) Explain how or why wealth maximization is viewed as a portfolio building strategy.

Calculate return and risk for the following portfolio when investing 70% in stock and 30% in bond.

	Avg. ROR	Std. Dev.

Correlation (stock, bond) = 0.47

3. Explain how using the S&P 500 index you may try to build a portfolio that may beat (outperform) the S&P 500 index results.