Exhibit 15 -Refer to Exhibit 15

question 27

Multiple Choice

Exhibit 15.1
Use the Information Below for the Following Problem(S)
A portfolio manager is trying to establish a strategic asset allocation for two different clients, Bob Bowman and Tom Luck. Bob Bowman has a risk tolerance factor of 22 and Tom Luck has a risk tolerance factor of 6. The characteristics of the three model portfolios under consideration are provided in the table below.
                               $\begin{array}{c}\begin{array}{lll}\text{Asset Mix}\end{array}\begin{array}{lll}&&&\end{array}\begin{array}{lll}Expecterd\end{array}\end{array}$
$\begin{array}{cllcc}\text { Portfolio } & \text { Stock } & \text { Aond } & \begin{array}{c} \\\text { Return }\end{array} & \text { Variance } \\\hline \text { A } & 0.75 & 0.25 & 0.12 & 0.45 \\\text { B } & 0.4 & 0.6 & 0.08 & 0.16 \\\text { C } & 0 . & 0.7 & 0.05 & 0.66\end{array}$
-Refer to Exhibit 15.1.The recommended portfolio for Tom Luck is

• A) Portfolio A because it has expected utility of 9.95
• B) Portfolio A because it has expected utility of 4.5
• C) Portfolio B because it has expected utility of 5.33
• D) Portfolio B because it has expected utility of 7.27
• E) Portfolio C because it has expected utility of 6.75

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Definitions:

Urine Test

A diagnostic analysis of urine by chemical, physical, or microscopic means to test for the presence of disease, drugs, or other substances.

Glucose Tolerance Test

A medical test measuring the body's ability to metabolize glucose and thus diagnose diabetes or prediabetes.

Blood Sugar Levels

The level of glucose found in the bloodstream, crucial for the diagnosis and treatment of diabetes.

Processes Sugar

The biological mechanism by which living organisms break down sugar (glucose) molecules to produce energy for cellular activities.