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Margaret, age 30, is beginning to contemplate her financial future. Right now, she lives in a large city where she rents a one-bedroom apartment. Although

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Margaret, age 30, is beginning to contemplate her financial future. Right now, she lives in a large city where she rents a one-bedroom apartment. Although she loves the excitement of the city, she knows that someday she would like to move to the country and live in a farmhouse. Her goal is to begin saving for this objective right away. Ayasha has identified three possible portfolios that might be appropriate choices as she begins investing to reach her objective. Each portfolio consists of the following stocks, bonds, and cash assets. Portfolio 1 10% cash 25% bonds 65% stocks Portfolio 2 Portfolio 3 10% cash 15% cash 30% bonds 45% bonds 60% stocks 40% stocks Calculate the weighted average rate of return for each portfolio, assuming that the average return of each asset is as follows. (Hint: Multiply the allocation percentage by the rate of return to determine the "weighted average for the asset: stocks 9%, bonds 4%, and cash assets 2%.) (Round answers to 2 decimal places, e.g. 52.25%.) Portfolio 1 Portfolio 2 Portfolio 3 ola Weighted average rate of return Which portfolio has the greatest level of uncertainty associated with the returns? Portfolio 1 Portfolio 2 Portfolio 3 If Margaret's risk tolerance is below average and she has a longtime horizon (15 years), which of the three portfolios would be most appropriate for her? If Margaret's time horizon for goal achievement is 4 years, which portfolio would be most appropriate? Margaret, age 30, is beginning to contemplate her financial future. Right now, she lives in a large city where she rents a one-bedroom apartment. Although she loves the excitement of the city, she knows that someday she would like to move to the country and live in a farmhouse. Her goal is to begin saving for this objective right away. Ayasha has identified three possible portfolios that might be appropriate choices as she begins investing to reach her objective. Each portfolio consists of the following stocks, bonds, and cash assets. Portfolio 1 10% cash 25% bonds 65% stocks Portfolio 2 Portfolio 3 10% cash 15% cash 30% bonds 45% bonds 60% stocks 40% stocks Calculate the weighted average rate of return for each portfolio, assuming that the average return of each asset is as follows. (Hint: Multiply the allocation percentage by the rate of return to determine the "weighted average for the asset: stocks 9%, bonds 4%, and cash assets 2%.) (Round answers to 2 decimal places, e.g. 52.25%.) Portfolio 1 Portfolio 2 Portfolio 3 ola Weighted average rate of return Which portfolio has the greatest level of uncertainty associated with the returns? Portfolio 1 Portfolio 2 Portfolio 3 If Margaret's risk tolerance is below average and she has a longtime horizon (15 years), which of the three portfolios would be most appropriate for her? If Margaret's time horizon for goal achievement is 4 years, which portfolio would be most appropriate

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