Portfolio Composition Asset Class Frugal Tim Spendthrift Elizabeth Domestic Equities 5% 45% Overseas Equities 10% 50% Fixed-Income Nominal Bonds 15% 0% Inflation-Linked Bonds 20% 0% Real Estate 30% 0% Cash and Cash Equivalent 20% 5% Total 100% 100% Risk-Free Rate Actual Returns on Individual Asset Classes 1.80% Month Domestic Equities Jan 22 (0.56%) Overseas Equities 2.37% Fixed Income Nominal Bonds 0.47% Inflation Linked Bonds 0.63% Real Estate Cash and Cash equivalent 0.31% 0.02% Feb 22 1.31% 1.19% 0.24% 0.31% 0.16% 0.02% Mar 22 2.12% (1.78%) 0.35% 0.47% 0.24% 0.02% Apr 22. 2.62% (3.56%) 0.71% 0.94% 0.47% 0.02% May 22 0.28% (0.59%) (0.12%) 0.16% 0.08% 0.02% Jun 22 1.11% (0.59%) 0.12% 0.16% 0.08% 0.02% Jul 22 1.14% 0.89% 0.18% 0.24% 0.12% 0.02% Aug 22 1.45% 1.19% 0.24% 0.31% 0.16% 0.02% Sep 22 (2.38%) (4.15%) (0.83%) (1.10%) 0.55% 0.02% Oct'22 3.46% 4.15% 0.83% 1.10% 0.55% 0.02% Nov'22 (0.42%) (1.19%) (0.24%) (0.31%) 0.16% 0.02% Dec'22 2.18% 2.96% 0.59% 0.79% 0.39% 0.02% Expected Annual Return 12.87% 0.54% 2.55% 3.74% 3.31% 0.24% "Monthly returns are compounded to calculate annual returns." Portfolio Allocation Client Domestic Equities Overse as Equities Frugal Tim 5% 10% Spendthrift Elizabeth 45% 50% Fixed Income Nominal Bonds 15% 0% Inflation Linked Bonds 20% 0% Real Estate 30% 0% Cash and Cash equivalent 20% 5% "Assume the above asset weightings remain unchanged throughout the year. Actual Porttolio Return Client Frugal Tim Spendthrift Elizabeth % p.a. 2.9% 6.1% Covariance Matrix Asset Class Domestic Equities Overseas Equities Fixed-Income Nominal Bonds Inflation-Linked Bonds Real Estate Cash and Cash Equivalent Domestic Equities Overse as Equities Fixed Income Nominal Bonds Inflation Linked Bonds Real Estate Cash and Cash equivalent 0.000254 0.000175 0.000063 0.000081 0.000003 0.000000 0.000175 0.000639 0.000067 0.000087 -0.000002 0.000000 0.000063 0.000067 0.000020 0.000026 0.000002 0.000000 0.000081 0.000087 0.000026 0.000035 0.000001 0.000000 0.000003 -0.000002 0.000002 0.000001 0.000003 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 Variances within Portfolio Client Domestic Equities Overse as Equities Fixed Income Nominal Bonds Inflation Linked Bonds Real Estate Frugal Tim Spendthrift Elizabeth Results Client Frugal Tim Actual Return Portfolio Variance Standard Deviation (Volatility) Sharpe Ratio Comments 2.9% Spendthrift Elizabeth 6.1% Cash and Cash equivalent