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Now you have a new client Mr . Smith who has $ 8 0 0 , 0 0 0 to invest. Based on an evaluation
Now you have a new client Mr Smith who has $ to invest. Based on an evaluation of Mr Smiths risk tolerance, you assign a maximum risk index of for him. Table shows the individual risk rating of the funds based on XYZs risk indicators. An overall portfolio risk index is computed as a weighted average of the risk rating for the three funds, where the weights are the fraction of the clients portfolio invested in each of the funds. Additionally, annual yields forecasted by XYZ are shown in Table Based on the information provided, how should Mr Smith be advised to allocate the $ among Alpha, Bravo, and Charlie funds? What is the annual yield you anticipate for the investment recommendation?
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