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\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 :

GinnyAnsweridn
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.
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