Question: 1. Consider four different stock market indexes representing different equity investment styles: Large-cap, Value: Russell 1000 Value (FRUS1VA) Large-cap, Growth: Russell 1000 Growth (FRUS1GR) Small-cap,

1. Consider four different stock market indexes representing different equity investment styles: Large-cap, Value: Russell 1000 Value (FRUS1VA) Large-cap, Growth: Russell 1000 Growth (FRUS1GR) Small-cap, Value: Russell 2000 Value (FRUS2VA) Small-cap, Growth: Russell 2000 Growth (FRUS2GR). Which of these investment styles would have been the most profitable to invest in over the following periods ending December 31, 2016: (a) the past three months, (b) the past year, and (c) the past five years? (Hint: You can calculate the growth of a $1 investment in all four strategies by taking the ratio of the beginning and ending index values for each of the respective investment periods). Which strategy appears to have been riskiest? Why?

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