C$.$ A modest management fee plus substantial incentives or performance fees under which

the management takes about $20\%$ of the fund's dividend incomes

D$.$ A modest management fee plus substantial incentives or performance fees under which

the management takes about $20\%$ of the capital gains when the client sells their shares

An analyst gathers the following information for the asset allocations of three portfolios:

Which of the portfolios is most likely appropriate an insurance company client?

A Portfolio $1.$

B Portfolio $2.$

C Portfolio $3.$

Which of the following forms of pooled investments is subject to the least amount of

regulation?

A Hedge funds.

B Exchange traded funds.

C Closed$-$end mutual funds.

Which of the following pooled investments is most likely characterized by a few large

investments?

A Hedge funds.

B Buyout funds.

C Venture capital funds

Questions $8-12$ are based on the following information:

A financial planner has created the following data to illustrate the application of utility theory to

portfolio selection:

Investment

Expected Return $(\%)$

Expected Standard

Deviation $(\%)$

Deviation $(\%)$

$2$

$8$

Correlation

$18$

$19$

$2$

$8$

$-1$