90m 52s autom utomatically save as you proceed through the test. Question 3 [15 marks] Liyon just started his first professional job two weeks ago and his parents have already started nagging him to start investing. Since he already has a small account open at Vanguard, he reluctantly decides to give them a call to discuss his options. Help answer Liyon's questions about the markets and talk him through different scenarios. Ticker Description Standard Allocation Historic Return Expense Ratio Deviation VFLAX S&P 500 Fund 50% 13. 62% 0 . 04% 18% Small Cap VSMAX 30% 11.62% 0. 05% 231 Fund VBTLX US Bond Fund 20% 3. 62% 0 . 05% 4% Year Return 1 11 . 60% 2 -26.20% 3 17.90% 4 7.30% Q Q Q acer S R Eas you proceed through the test. L - 26.20% 17.90% 7.30% Year Sell - Return Sell - Value $1, 000 -50% 2 3% 3% 4 3% 5 3% 6 3% Using the information provided, answer the following questions: Question 9 Assume you see the returns on the right over the next 4 years. What is the geometric average return? [5 marks] A . X. 66 X H - Q acer S P I REsave as you proceed through the test. Question 10 Let's say that you $1,000 today. Over the next year the market drops 50 percent. In Scenario 1, you panic and sell all of your stock, locking in your loss. You go and buy Treasury bills, which give you a safe guaranteed 3 percent annual return. And scenario 2 is you stay calm and don't sell or change anything. How much is Liyon's portfolio at the end of Year 6 in scenario 2? [10 marks] H . =. BIA X X QEE 6 x Q Q Question 4 [20 marks] acer P R Prose Pause Insen Delete