Question

use the table to answer the question that follows.

\\(\

$$\begin{array}{cccc} \\text{ror} & \\text{portfolio 1} & \\text{portfolio 2} & \\text{portfolio 3} \\\\ 7.3\\% & \\$1,150 & \\$800 & \\$1,100 \\\\ 1.8\\% & \\$1,825 & \\$2,500 & \\$525 \\\\ -0.7\\% & \\$1,405 & \\$250 & \\$825 \\\\ 10.4\\% & \\$1,045 & \\$1,200 & \\$400 \\\\ 2.7\\% & \\$1,450 & \\$1,880 & \\$2,225 \\end{array}$$

\\)

using technology, calculate the weighted mean of the rors for each portfolio. based on the results, which list shows a comparison of the overall performance of the portfolios, from best to worst?

portfolio 3, portfolio 1, portfolio 2
portfolio 3, portfolio 2, portfolio 1
portfolio 1, portfolio 2, portfolio 3
portfolio 2, portfolio 3, portfolio 1

Explanation:

Calculate the weighted mean rate of return for Portfolio 1

$$
LATEXBLOCK0
$$

Calculate the weighted mean rate of return for Portfolio 2

$$
LATEXBLOCK1
$$

Calculate the weighted mean rate of return for Portfolio 3

$$
LATEXBLOCK2
$$

Compare the overall performance from best to worst

$$
LATEXBLOCK3
$$

Answer:

• Portfolio 3, Portfolio 1, Portfolio 2
• Portfolio 3, Portfolio 2, Portfolio 1
• Portfolio 1, Portfolio 2, Portfolio 3
• Portfolio 2, Portfolio 1, Portfolio 3 (Correct answer)