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Consider these historical returns for these three assets Domestic Foreign Other -0.9% 5.7% 19.7% 3.5% 5.3% 19.3% 10.7% -1.4% 18.7% 0.1% 0.4% 0.1% 9.6% 4.7%

Consider these historical returns for these three assets






Domestic Foreign Other

-0.9% 5.7% 19.7%

3.5% 5.3% 19.3%

10.7% -1.4% 18.7%

0.1% 0.4% 0.1%

9.6% 4.7% 17.6%

11.7% -0.9% -1.4%

11.3% 3.5% 0.4%

-1.4% 4.7% 18.7%

0.4% 0.1% -0.9%

10.7% 3.6% 3.5%





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%
#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 two 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





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