Question # 18

Use the table to answer the question that follows:

ROR Portfolio 1 Portfolio 2 Portfolio 3

4.3% $3,525 $751 $965

-3.4% $800 $1,475 $3,570

9.7% $2,130 $1,155 $2,880

2.7% $1,050 $955 $3,660

11.4% $230 $1,005 $700

Calculate the weighted mean of the RORs for each portfolio. Which list shows a comparison of the overall performance of the portfolios, from worst to best?

a) Portfolio 1, Portfolio 2, Portfolio 3

b) Portfolio 2, Portfolio 1, Portfolio 3

c) Portfolio 3, Portfolio 1, Portfolio 2

d) Portfolio 3, Portfolio 2, Portfolio 1

I need the step by step breakdown of solving this problem without using Excel and the answer please. I cannot use Excel on my test.