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Checked Portfolio Gain and Risk Historical Stock Returns begin{tabular}{|c|c|c|} hline Year & Stock #1 & Stock #2 hline 1 & 11.0% & 0.137

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Checked Portfolio Gain and Risk Historical Stock Returns \begin{tabular}{|c|c|c|} \hline Year & Stock \#1 & Stock \#2 \\ \hline 1 & 11.0% & 0.137 \\ \hline 2 & 17.4% & 0.216 \\ \hline 3 & 5.9% & 0.073 \\ \hline 4 & 10.7% & 0.133 \\ \hline 5 & 15.5% & 0.193 \\ \hline \end{tabular} Suppose you invest $1.000 in two stocks, as follows: Stock#1Stock#2$$650.00350.00 Notice that the "weight" of dollars invested in stock \#1 is 65.0% Notice that the "weight" of dollars invested in stock \# 2 is 35.0% At the end of the first year: The $650 earned 11.0%, (so ending value was $578.50 ) The $350 earned 13.7%, (so ending value was $302.05 ) The portfolio value was worth $880.55 At the beginning of the second year, you re-arrange your invested dollars so that the weights are the same as they were originally. For instance, you invest ($880.5500)(0.6500)=$572.3575 in stock 1, and and $308.1925 in stock 2 . You continue this process for all five years (computing ending values for each stock and the portfolio, then re-balancing, then finding the new values using that year's returns from the chart above). After doing the computations, you have six Ending Values: (You will need to fill in the amounts in the four boxes). Please complete the chart (find the remaining ending values). Notice that your portfolio's dollar gain for year 1 is $119.45 \#1 What is the biggest (most positive) annual dollar gain from years A Between 90 and 175 B Between 175 and 200 C Between 200 and 225 D Between 225 and 280 Please compute the annual "Total Relative Return" for each year. For instance, the first return is as shown below

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