Homework 1 1. Jerry and Linda Hawkinson need financial guidance. They met with three financial advisors to compare the advisors before they hired one. Though their forms were slightly different format, all three financial advisors collected essentially the same information and asked very similar questions. Jerry and Linda Hawksinson - Comparison of Financial Advisors Objectives Risk Advisor Firm Fee Return (S.D.) Jane Best Morgan Stanley Engaging, smart 1.00% 6.00% 11.00% Will Zander Fidelity Smart, funny 1.00% 6.50% 13.50% Ann Ruzicka JP Morgan Very serious, smart, dull 1.00% 6.00% 12.50% Strategic Asset Allocations Jane Best Morgan Stanley Asset Class Weight U.S. Large Cap Equity U.S. Treasures 70% 30% will Zander Fidelity Asset Class Weight U.S. Large Cap Equity U.S. Treasures 80% 20% Ann Ruzicka JP Morgan Asset Class Weight U.S. Large Cap Equity U.S. Treasures 80% 20% 1 A. Calculate the expected return and risk (s.d.) for each portfolio and determine whether it meets the established risk and return objectives for the Hawkinsons. [Use the Capital Market Assumptions from the Horizon CMA document on Blackboard-20yr Geometric for expected returns. Show your work. B. Which advisor do you think they should choose? Why? ords: 807 Spell Check E