EBP Assets are broken into three main asset categories: EQUITY, FIXED INCOME and REAL ESTATE: Each Category (and sub- category), has over 100 years of history of financial data (returns, etc.) in large well established markets as follows: 10 Yr Avg (Holding Period) Returns Std Dev of 10 Yr Returns EQUITY: Large Cap Mid Cap Small Cap 11.50% 13.50% 17.00% 5.00% 6.75% 9.75% FIXED INCOME Government Issue Private Issue 5.00% 7.00% 0.75% 2.50% REAL ESTATE RE Backed 10.00% 3.50% The initial EBP is comprised of the following ($ in Mil): EQUITY - Large Cap $ 250 EQUITY - Mid Cap $ 80 EQUITY - Small Cap $ 35 FIXED INCOME - Gov Issue $50 FIXED INCOME - Private Issue $25 $ REAL ESTATE - RE Backed $60 Senior Management now asks you to provide a new recommended EBP structure that will: A) keep the current (calculated above) expected EBP return within a 75% statistical confidence range of your new EBP structure expected returns, while reducing the risk (range of expected returns) from EBP's current asset disposition. B) Provide an explanation of how the new EBP risk measure differs from the initial EBP. How are you calculating (comparing) the change in portfolio risk? Provide appropriate supporting calculations, tables, graphs, etc. to support your above analysis. EBP Assets are broken into three main asset categories: EQUITY, FIXED INCOME and REAL ESTATE: Each Category (and sub- category), has over 100 years of history of financial data (returns, etc.) in large well established markets as follows: 10 Yr Avg (Holding Period) Returns Std Dev of 10 Yr Returns EQUITY: Large Cap Mid Cap Small Cap 11.50% 13.50% 17.00% 5.00% 6.75% 9.75% FIXED INCOME Government Issue Private Issue 5.00% 7.00% 0.75% 2.50% REAL ESTATE RE Backed 10.00% 3.50% The initial EBP is comprised of the following ($ in Mil): EQUITY - Large Cap $ 250 EQUITY - Mid Cap $ 80 EQUITY - Small Cap $ 35 FIXED INCOME - Gov Issue $50 FIXED INCOME - Private Issue $25 $ REAL ESTATE - RE Backed $60 Senior Management now asks you to provide a new recommended EBP structure that will: A) keep the current (calculated above) expected EBP return within a 75% statistical confidence range of your new EBP structure expected returns, while reducing the risk (range of expected returns) from EBP's current asset disposition. B) Provide an explanation of how the new EBP risk measure differs from the initial EBP. How are you calculating (comparing) the change in portfolio risk? Provide appropriate supporting calculations, tables, graphs, etc. to support your above analysis