I would like help on 2 questions for the attached case:

1) Was the baseline-mix of Partners Healthcare efficient? If not, what could be the reason? (ignore real assets)

2) Suppose, Hospital Z aims to achieve target expected return of Y% per year. How would you advise to allocate its wealth among the following asset classes:

a) short-term pool, US stocks, foreign stocks, corporate bonds, REITS;

b) short-term pool, US stocks, foreign stocks, corporate bonds, commodities;