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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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