assignment 1. Invest $20,000 in the S&P Composite and U.S. Treasuries at the end of December, 2007 in S&P:Treasuries 75%:25%, 50%:50% and 25%:75% Allocations. Use fractional shares for the S&P and $1,000 Par Values for the initial purchases. 2. Please report the Ending Portfolio Balance and Capital Gain/Loss Percentage for each of the three Allocations. 3. Devise an optimal asset allocation allowing yourself the freedom to change the Asset Allocation at each new Date. Please report the Ending Portfolio Balance and Capital Gain/Loss Percentage for your Optimal Allocation. Please send the worksheet to go with the answers.

Portfolio Allocation Assignment 021917 Date S&P Comp. P Dividend D Earnings E Consumer Price Index CPI Date Fraction Long Interest Rate GS10 Real Price Real Dividend Real Earnings Earnings Ratio P/E10 or CAPE 2007.12 1479.22 27.73 66.18 210.036 2007.96 4.10 1700.75 31.88 76.09 25.96 2009.03 757.13 27.26 6.86 212.709 2009.21 2.82 859.58 30.95 7.79 13.32 2016.09 2157.69 45.03 89.09 241.428 2016.71 1.63 2158.26 45.04 89.11 26.73 2017.02 2297.11 241.491 2017.12 2.48 2297.11 Assignment 1. Invest $20,000 in the S&P Composite and U.S. Treasuries at the end of December, 2007 in S&P:Treasuries 75%:25%, 50%:50% and 25%:75% Allocations. Use fractional shares for the S&P and $1,000 Par Values for the initial purchases. 2. Please report the Ending Portfolio Balance and Capital Gain/Loss Percentage for each of the three Allocations. 3. Devise an optimal asset allocation allowing yourself the freedom to change the Asset Allocation at each new Date. Please report the Ending Portfolio Balance and Capital Gain/Loss Percentage for your Optimal Allocation. 28.66