NO.PZ201805280100000302
问题如下：
A broker proposes to Young three portfolios, shown in Exhibit 1. The broker also provides Young with asset class estimated returns and portfolio standard deviations in Exhibit 2 and Exhibit 3, respectively. The broker notes that there is a $500,000 minimum investment requirement for alternative assets. Finally, because the funds in the money market account are readily investible, the broker suggests using that account only for this initial investment round.
Young wants to earn at least 6.0% after tax per year, without taking on additional incremental risk. Young’s capital gains and overall tax rate is 25%.
Determine which proposed portfolio most closely meets Young’s desired objectives. (Circle one.) Justify your response.
选项：
解释：
portfolio 3.
As a $500,000 minimum investment requirement for alternative assets, portfolio 2 is excluded since 5% weight in private equity is less than the minimum investment requirement.
Young wants to earn at least 6.0% after tax per year, without taking on additional incremental risk. the after-tax return of portfolio 1 is 9.1125%, the after-tax return of portfolio 3 is 6.45%. however portfolio 1 take more risk as the standard deviation is larger than portfolio 3. therefore portfolio 1 is excluded too.
