You are examining a portfolio consisting of 3 stocks. Using the data in the table:

A. Compute the annual returns for a portfolio with 30 % invested in North Air, 25 % invested in West Air, and 45 % invested in Tex Oil.

The annual return for 2010 will be:(Round to two decimal places.)

B. What is the lowest annual return for your portfolio in part (a)?How does it compare with the lowest annual return of the individual stocks or portfolios in the table above.(Select all the choices that apply.)

I.The portfolio computed in part (a) had its lowest annual return in 2010 (8.40%).

II.The portfolio computed in part (a) had its lowest annual return in 2011 (12.10%).

III.This is higher than the lowest annual return of each individual stock and the other portfolios in the table above as well.

IV.This is lower than each individual stock and the other portfolios in the table above as well.

Stock Returns Tex Oil North Air 22% 31% - 6% 9% 8% Year 2010 2011 2012 2013 2014 2015 Average Return Volatility Portfolio Returns (R+Rw) (R +R) 15.5% 4.0% 26.5% 8.0% 8.0% 8.5% -3.5% 10.5% -3.5% 12.5% 20.0% 10.5% 10.5% 12.4% 5.2% West Air 9% 22% 8% - 1% -6% 31% 10.5% 13.9% 22% - 6% - 1% 9% 10.5% 13.9% 31% 8% 19.5% 10.5% 13.9% Year North Air W Portfolio est Air 9% Tex Oil - 1% 2010 22% The annual return for 2011 will be: (Round to two decimal places.) Year North Air West Air Tex Oil Portfolio 2011 31% 22% -6% The annual return for 2012 will be: (Round to two decimal places.) Portfolio Year 2012 North AirW est Air 8% 8% Tex Oil 9% The annual return for 2013 will be: (Round to two decimal places.) Year North Air Portfolio West Air -1% Tex Oil 22% 2013 -6% % The annual return for 2014 will be: (Round to two decimal places.) Year Portfolio North Air - 1% West Air -6% Tex Oil 31% 2014 % The annual return for 2015 will be: (Round to two decimal places.) Portfolio Year 2015 North Air 9% West Air 31% Tex Oil 8% %