Please Answer Questions Below:

1) How many stocks in the balanced portfolio have a HIGHER modified Sharpe Ratio than the weighted average portfolio?

A) 2

B)0

C) 1

D)3

2) How much higher is the optimized portfolio's Sharpe Ratio than that of the balanced portfolio?

A) 0.00%

B) 0.93%

C) 1.93%

D) 2.93%

3) How many stocks end up excluded from optimized portfolio?

A) 1

B) 3

C) 0

D) 2

4) How much more weight is given to VZ in the optimized portfolio than in the balanced portfolio ( Approx )?

A) It has lower than 20% weight when optimized.

B) 9%

C) It has exactly the same weight ( 20%).

D) 19%

5) What answer BEST describes what happened after the organization

A) Much different stock distribution, but the risk is actually higher.

B) Similar return and risk, but much different stock distribution.

C) Much different stock distribution but the return is actually lower.

D) Similar Stock distribution, but much improved return and risk.

1 Ticker LUV JPM MSFT VZ EBAY LUV JPM MSFT VZ EBAY Portfolio Tech Tech Services Services Banking 20% 20% Tech 20% Tech 20% Services 20% 2 Sector Services Banking 3 Weights 4. Date 185 6/16/2014 27.20 56.41 186 6/23/2014 27.05 56.39 187 6/30/2014 27.62 56.31 188 7/7/2014 27.35 55.07 189 7/14/2014 27.72 57.47 190 7/21/2014 29.14 58.24 191 7/28/2014 28.33 55.74 192 8/4/2014 28.18 55.61 193 8/11/2014 29.66 56.01 194 8/18/2014 31.82 57.73 195 8/25/2014 32.09 58.57 196 197 Average 198 SD 199 Modified Sharpe Ratio 41.16 41.72 41.28 41.57 44.13 43.95 42.33 42.66 44.23 44.87 44.89 47.76 47.69 48.07 49.18 49.60 50.12 48.70 47.60 47.70 47.54 48.04 49.34 50.08 50.94 51.50 51.48 52.75 52.53 54.09 52.64 55.50 55.49 3.78% -0.55% 2.11% -0.98% 1.35% 5.12% -2.78% -0.53% 5.25% 7.28% 0.85% 0.89% -0.04% -0.14% -2.20% 4.36% 1.34% -4.29% -0.23% 0.72% 3.07% 1.46% 1.08% 1.36% -1.05% 0.70% 6.16% -0.41% 3.69% 0.78% 3.68% 1.45% 0.04% 0.44% -0.15% 0.80% 2.31% 0.85% 1.05% -2.83% -2.26% 0.21% -0.34% 1.05% 0.61% 1.50% 1.72% 1.10% -0.04% 2.47% -0.42% 2.97% -2.68% 5.43% -0.02% 100% Return 1.36% 0.43% 0.68% 0.19% 2.54% 1.91% -2.80% 0.15% 1.44% 3.38% 0.68% 1 Ticker LUV JPM MSFT VZ EBAY LUV JPM MSFT VZ EBAY Portfolio Tech Tech Services Services Banking 20% 20% Tech 20% Tech 20% Services 20% 2 Sector Services Banking 3 Weights 4. Date 185 6/16/2014 27.20 56.41 186 6/23/2014 27.05 56.39 187 6/30/2014 27.62 56.31 188 7/7/2014 27.35 55.07 189 7/14/2014 27.72 57.47 190 7/21/2014 29.14 58.24 191 7/28/2014 28.33 55.74 192 8/4/2014 28.18 55.61 193 8/11/2014 29.66 56.01 194 8/18/2014 31.82 57.73 195 8/25/2014 32.09 58.57 196 197 Average 198 SD 199 Modified Sharpe Ratio 41.16 41.72 41.28 41.57 44.13 43.95 42.33 42.66 44.23 44.87 44.89 47.76 47.69 48.07 49.18 49.60 50.12 48.70 47.60 47.70 47.54 48.04 49.34 50.08 50.94 51.50 51.48 52.75 52.53 54.09 52.64 55.50 55.49 3.78% -0.55% 2.11% -0.98% 1.35% 5.12% -2.78% -0.53% 5.25% 7.28% 0.85% 0.89% -0.04% -0.14% -2.20% 4.36% 1.34% -4.29% -0.23% 0.72% 3.07% 1.46% 1.08% 1.36% -1.05% 0.70% 6.16% -0.41% 3.69% 0.78% 3.68% 1.45% 0.04% 0.44% -0.15% 0.80% 2.31% 0.85% 1.05% -2.83% -2.26% 0.21% -0.34% 1.05% 0.61% 1.50% 1.72% 1.10% -0.04% 2.47% -0.42% 2.97% -2.68% 5.43% -0.02% 100% Return 1.36% 0.43% 0.68% 0.19% 2.54% 1.91% -2.80% 0.15% 1.44% 3.38% 0.68%