Briefly discuss how the results support the trade-off of risk and return, the importance of asset allocation, and the contribution of diversification

Portfolio 1 Asset Class Allocation 16 % US Stock Market 52.00% 52 % Global ex-US Stock Market 28.00% 28 % Total US Bond Market 16.00% Global Bonds (Unhedged) 4.00% A Save asset allocation >> US Stock Market Global ex-US Stock Market Total US Bond Market Global Bonds (Unhedged) Portfolio 2 16 % 13 % Asset Class Allocation US Stock Market 13.00% Global ex-US Stock Market 7.00% Total US Bond Market 64.00% 64 % Global Bonds (Unhedged) 16.00% A Save asset allocation >> US Stock Market Global ex-US Stock Market Total US Bond Market Global Bonds (Unhedged) Portfolio 3 15 % Asset Class Allocation 30 % 15 % US Stock Market 30.00% REIT 20.00% 15 % 20 % Intl Developed ex-US Market 15.00% Emerging Markets 5.00% TIPS 15.00% 500.00 US Stock Market REIT Intl Developed ex-US Market Emerging Markets TIPS Short Term Treasury Short Term Treasury 15.00% A Save asset allocation >> Portfolio Returns Portfolio Initial Balance Final Balance CAGR Stdev Best Year Worst Year Max. Drawdown Sharpe Ratio Sortino Ratio US Mkt Correlation Portfolio 1 $10,000 $36,661 0 6.74% 0 12.55% 28.90% -30.91% -44.03% 0 0.47 0.68 0.98 Portfolio 2 $10,000 $29,424 0 5.57% 0 4.48% 12.85% -5.10% -11.36% 0 0.92 1.47 0.68 Portfolio 3 $10,000 $39,644 0 7.16% 0 11.13% 26.78% -26.78% -41.63% 0 0.55 0.78 0.93 Portfolio Growth $45,000 $40,000 $35,000 $30,000 Portfolio Balance ($) $25,000 $20,000 $15,000 $10,000 $5,000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Year Portfolio 1 Portfolio 2 Portfolio 3 Annual Returns 40.00 30.00 20.00 10.00 l l. 1 n. . . . . Annual Return Duck 0.00% - 10.00 -20.00 -30 090 -40.00 2001 2002 2003 2004 2005 2006 2007 2008 2009 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 Year Portfolio 1 Portfolio 2 Portfolio 3 Portfolio 1 Asset Class Allocation 16 % US Stock Market 52.00% 52 % Global ex-US Stock Market 28.00% 28 % Total US Bond Market 16.00% Global Bonds (Unhedged) 4.00% A Save asset allocation >> US Stock Market Global ex-US Stock Market Total US Bond Market Global Bonds (Unhedged) Portfolio 2 16 % 13 % Asset Class Allocation US Stock Market 13.00% Global ex-US Stock Market 7.00% Total US Bond Market 64.00% 64 % Global Bonds (Unhedged) 16.00% A Save asset allocation >> US Stock Market Global ex-US Stock Market Total US Bond Market Global Bonds (Unhedged) Portfolio 3 15 % Asset Class Allocation 30 % 15 % US Stock Market 30.00% REIT 20.00% 15 % 20 % Intl Developed ex-US Market 15.00% Emerging Markets 5.00% TIPS 15.00% 500.00 US Stock Market REIT Intl Developed ex-US Market Emerging Markets TIPS Short Term Treasury Short Term Treasury 15.00% A Save asset allocation >> Portfolio Returns Portfolio Initial Balance Final Balance CAGR Stdev Best Year Worst Year Max. Drawdown Sharpe Ratio Sortino Ratio US Mkt Correlation Portfolio 1 $10,000 $36,661 0 6.74% 0 12.55% 28.90% -30.91% -44.03% 0 0.47 0.68 0.98 Portfolio 2 $10,000 $29,424 0 5.57% 0 4.48% 12.85% -5.10% -11.36% 0 0.92 1.47 0.68 Portfolio 3 $10,000 $39,644 0 7.16% 0 11.13% 26.78% -26.78% -41.63% 0 0.55 0.78 0.93 Portfolio Growth $45,000 $40,000 $35,000 $30,000 Portfolio Balance ($) $25,000 $20,000 $15,000 $10,000 $5,000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Year Portfolio 1 Portfolio 2 Portfolio 3 Annual Returns 40.00 30.00 20.00 10.00 l l. 1 n. . . . . Annual Return Duck 0.00% - 10.00 -20.00 -30 090 -40.00 2001 2002 2003 2004 2005 2006 2007 2008 2009 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 Year Portfolio 1 Portfolio 2 Portfolio 3