Pretend your portfolio is 100% invested in US Large Cap Equities. You are seeking to achieve an annual portfolio return around 7.0%. You want to diversify your portfolio and reduce your portfolio risk. Select three (3) asset classes that will help you achieve your two portfolio goals, namely a 7% return and less than a 16% standard deviation of portfolio returns. For each asset class, provide two (2) reasons why you selected the asset class.

		Expected	Expected
		Annual	Annual
Asset Class	Asset Class	Return	Standard Deviation
A	US Large Cap Eq	7.00%	16.0%
B	Undisclosed	7.50%	20.0%
C	Undisclosed	8.25%	22.0%
D	Undisclosed	2.50%	6.0%
E	Undisclosed	4.50%	10.0%
F	Undisclosed	2.00%	18.0%
G	Undisclosed	5.00%	8.0%

	Correlation Matrix
Asset Class
A	1.00
B	0.92	1.00
C	0.78	0.77	1.00
D	0.00	0.00	0.00	1.00
E	0.60	0.60	0.55	0.00	1.00
F	-0.10	-0.10	-0.10	-0.25	-0.10	1.00
G	-0.30	-0.35	-0.35	0.10	-0.15	0.25	1.00
Asset Class	A	B	C	D	E	F	G