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PLEASE PROVIDE A DETAILED STEP-BY-STEP EXPLANATION ON HOW YOU SOLVED EACH STEP OF THE PROBLEM PLEASE AND THANK YOU! Problem 5-09 The table below shows

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PLEASE PROVIDE A DETAILED STEP-BY-STEP EXPLANATION ON HOW YOU SOLVED EACH STEP OF THE PROBLEM PLEASE AND THANK YOU!

Problem 5-09 The table below shows data on the returns over five 1-year periods for seven mutual funds. A firm's portfolio managers will assume that one of these scenarios will accurately reflect the investing climate over the next 12 months. The probabilities of each of the scenarios occurring are 0.1, 0.3, 0.1, 0.1, and 0.4 for years 1 to 5, respectively RETURNS OVER FIVE 1-YEAR PERIODS FOR SEVEN MUTUAL FUNDS Mutual Funds Large-Cap Stock Mid-Cap Stock Small-Cap Stock Energy/Resources Sector Health sector Technology Sector Real Estate Sector Planning Scenarios for Next 12 Months Year 1 Year 2 Year 3 Year 4 Year 5 28.3 0.9 6.0 -20.5 29.7 45.7 21.1 35.3 32.3 20.8 25.3 49.1 46.2 20.5 20.0 23.2 22.5 33.9 5.5 21.7 44.0 10.4 49.3 33.3 20.9 77.7 93.1 2.6 -9.3 22.8 -2.5 20.1 5.1

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