Answered

Discover a world of knowledge at Westonci.ca, where experts and enthusiasts come together to answer your questions. Get immediate and reliable solutions to your questions from a community of experienced experts on our Q&A platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

\begin{tabular}{|c|l|l|l|}
\hline Investment & Portfolio 1 & Portfolio 2 & Portfolio 3 \\
\hline Stock in Large, Old Corporation & [tex]$\$[/tex] 1,800[tex]$ & $[/tex]\[tex]$ 2,200$[/tex] & [tex]$\$[/tex] 400[tex]$ \\
\hline Stock in Emerging Company & $[/tex]\[tex]$ 600$[/tex] & [tex]$\$[/tex] 1,200[tex]$ & $[/tex]\[tex]$ 5,500$[/tex] \\
\hline U.S. Treasury Bond & [tex]$\$[/tex] 1,100[tex]$ & $[/tex]\[tex]$ 3,500$[/tex] & [tex]$\$[/tex] 1,200[tex]$ \\
\hline Junk Bond & $[/tex]\[tex]$ 500$[/tex] & [tex]$\$[/tex] 1,300[tex]$ & $[/tex]\[tex]$ 3,000$[/tex] \\
\hline Certificate of Deposit & [tex]$\$[/tex] 1,700[tex]$ & $[/tex]\[tex]$ 4,200$[/tex] & [tex]$\$[/tex] 600$ \\
\hline
\end{tabular}

Which of the following shows the portfolios' levels of risk from lowest to highest?

A. Portfolio 2, Portfolio 3, Portfolio 1

B. Portfolio 1, Portfolio 3, Portfolio 2

C. Portfolio 2, Portfolio 1, Portfolio 3

D. Portfolio 3, Portfolio 2, Portfolio 1

Sagot :

GinnyAnswer
To determine the portfolios' levels of risk from lowest to highest based on their investment amounts, we first need to sum the total values of each portfolio. Here's how we do this step-by-step:

1. Calculate the total investment for Portfolio 1:
[tex]\[ \$1,800 + \$600 + \$1,100 + \$500 + \$1,700 = \$5,700 \][/tex]

2. Calculate the total investment for Portfolio 2:
[tex]\[ \$2,200 + \$1,200 + \$3,500 + \$1,300 + \$4,200 = \$12,400 \][/tex]

3. Calculate the total investment for Portfolio 3:
[tex]\[ \$400 + \$5,500 + \$1,200 + \$3,000 + \$600 = \$10,700 \][/tex]

Now, we compare the total investment amounts to determine the risk levels. A higher total investment amount indicates a hypothetically higher level of risk.

- Portfolio 1 Total: \[tex]$5,700 - Portfolio 2 Total: \$[/tex]12,400
- Portfolio 3 Total: \[tex]$10,700 From lowest to highest: 1. Portfolio 1 has the lowest total value of \$[/tex]5,700.
2. Portfolio 3 follows with a total value of \[tex]$10,700. 3. Portfolio 2 has the highest total value of \$[/tex]12,400.

Thus, the portfolios' levels of risk from lowest to highest are:

Portfolio 1, Portfolio 3, Portfolio 2.
We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.