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Checked Two Dominated Portfolios Consider these historical returns for these three assets Domestic Foreign Other 15.3% 8.7% 1.3% 16.0% -1.5% 2.0% -1.2% -1.2% -0.1% 15.0%
Checked | Two Dominated Portfolios | ||
Consider these historical returns for these three assets | |||
Domestic | Foreign | Other | |
15.3% | 8.7% | 1.3% | |
16.0% | -1.5% | 2.0% | |
-1.2% | -1.2% | -0.1% | |
15.0% | 7.0% | -0.6% | |
0.2% | 0.2% | 5.8% | |
-0.1% | 7.3% | 2.7% | |
-0.6% | 8.0% | -1.5% | |
19.8% | -0.1% | -1.2% | |
16.7% | -0.6% | 1.0% | |
-1.5% | 11.8% | 0.2% | |
Consider the following weights (and start with $1,000). | |||
Domestic | Foreign | Other | |
Portfolio One | 5% | 32% | 63% |
Portfolio Two | 5% | 63% | 32% |
Portfolio Three | 32% | 5% | 63% |
Portfolio Four | 32% | 63% | 5% |
Portfolio Five | 63% | 5% | 32% |
Portfolio Six | 63% | 32% | 5% |
#1 This question is about the Other asset for Portfolio One. | |||
What is the average of the ten Ending Balance amounts? | |||
A Between 400 and 750 | |||
B Between 750 and 840 | |||
C Between 840 and 950 | |||
D Between 950 and 1,300 | |||
#2 This question is about the Foreign asset for Portfolio Four. | |||
What happens at the beginning of the second year? | |||
A Between 0 and 25 will be added | |||
B Between 25 and 100 will be added | |||
C Between 0 and 25 will be subtracted | |||
D Between 25 and 100 will be subtracted | |||
Please put your answer on the Answer Sheet | |||
Two Dominated Portfolios continued | |||
#3 This question is about the Domestic asset for Portfolio Six. | |||
Each year there is a change (from the beginning to the end) | |||
in the dollar value of that asset. What is the largest (most | |||
positive) increase across the ten years? | |||
A Between 10 and 40 | |||
B Between 40 and 90 | |||
C Between 90 and 120 | |||
D Between 120 and 200 | |||
Please put your answer on the Answer Sheet | |||
#4 Which portfolios are dominated? | |||
A | Portfolio One and Two | ||
B | Portfolio One and Three | ||
C | Portfolio One and Four | ||
D | Portfolio One and Five | ||
E | Portfolio One and Six | ||
F | Portfolio Two and Three | ||
G | Portfolio Two and Four | ||
H | Portfolio Two and Five | ||
I | Portfolio Two and Six | ||
J | Portfolio Three and Four | ||
K | Portfolio Three and Five | ||
L | Portfolio Three and Six | ||
M | Portfolio Four and Five | ||
N | Portfolio Four and Six | ||
O | Portfolio Five and Six |
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