Which portfolio would you recommend to your client

Question

Discuss the below:

Q1) What has been the expected return and risk for the S&P 500 during that time period (average annual return and standard deviation)?

Q2) How does the portfolio fair compare to the S&P 500? Explain.

Q3) Your client has $50,000 to invest and you plan to invest 60% in the security with the highest expected return. What would be the characteristics of this portfolio be (E(R),S)?

Q4) Which portfolio would you recommend to your client? The one created in above (1 above) or the portfolio in (4) explain your reasoning

	Target	Southwest	Portfolio Return	Portfolio Variance	Portfolio Std. Dev.
Expected Return	0.076	0.091	= Wx*Rx + Wy*Ry	= (Wx*SDx)^2 + (Wy*SDy)*2 + 2*Corr*Wx*Wy*SDx*Sdy	=SQRT(Variance)
Standard Deviation	0.007	0.007
correlation coefficient	0.19
Weight	1%	99%	0.091	0.000049	0.006973
	2%	98%	0.090	0.000048	0.006918
	3%	97%	0.090	0.000047	0.006864
	4%	96%	0.090	0.000046	0.006810
	5%	95%	0.090	0.000046	0.006758
	6%	94%	0.090	0.000045	0.006706
	7%	93%	0.090	0.000044	0.006655
	8%	92%	0.090	0.000044	0.006605
	9%	91%	0.089	0.000043	0.006556
	10%	90%	0.089	0.000042	0.006508
	11%	89%	0.089	0.000042	0.006461
	12%	88%	0.089	0.000041	0.006415
	13%	87%	0.089	0.000041	0.006370
	14%	86%	0.089	0.000040	0.006326
	15%	85%	0.089	0.000039	0.006283
	16%	84%	0.088	0.000039	0.006241
	17%	83%	0.088	0.000038	0.006200
	18%	82%	0.088	0.000038	0.006161
	19%	81%	0.088	0.000037	0.006122
	20%	80%	0.088	0.000037	0.006085
	21%	79%	0.088	0.000037	0.006049
	22%	78%	0.087	0.000036	0.006014
	23%	77%	0.087	0.000036	0.005980
	24%	76%	0.087	0.000035	0.005948
	25%	75%	0.087	0.000035	0.005916
	26%	74%	0.087	0.000035	0.005887
	27%	73%	0.087	0.000034	0.005858
	28%	72%	0.087	0.000034	0.005831
	29%	71%	0.086	0.000034	0.005805
	30%	70%	0.086	0.000033	0.005780
	31%	69%	0.086	0.000033	0.005757
	32%	68%	0.086	0.000033	0.005735
	33%	67%	0.086	0.000033	0.005715
	34%	66%	0.086	0.000032	0.005696
	35%	65%	0.086	0.000032	0.005679
	36%	64%	0.085	0.000032	0.005663
	37%	63%	0.085	0.000032	0.005648
	38%	62%	0.085	0.000032	0.005635
	39%	61%	0.085	0.000032	0.005624
	40%	60%	0.085	0.000032	0.005614
	41%	59%	0.085	0.000031	0.005605
	42%	58%	0.085	0.000031	0.005598
	43%	57%	0.084	0.000031	0.005593
	44%	56%	0.084	0.000031	0.005589
	45%	55%	0.084	0.000031	0.005587
	46%	54%	0.084	0.000031	0.005586
	47%	53%	0.084	0.000031	0.005587
	48%	52%	0.084	0.000031	0.005589
	49%	51%	0.083	0.000031	0.005593
	50%	50%	0.083	0.000031	0.005598
	51%	49%	0.083	0.000031	0.005605
	52%	48%	0.083	0.000032	0.005613
	53%	47%	0.083	0.000032	0.005623
	54%	46%	0.083	0.000032	0.005634
	55%	45%	0.083	0.000032	0.005647
	56%	44%	0.082	0.000032	0.005662
	57%	43%	0.082	0.000032	0.005678
	58%	42%	0.082	0.000032	0.005695
	59%	41%	0.082	0.000033	0.005714
	60%	40%	0.082	0.000033	0.005734
	61%	39%	0.082	0.000033	0.005755
	62%	38%	0.082	0.000033	0.005778
	63%	37%	0.081	0.000034	0.005803
	64%	36%	0.081	0.000034	0.005829
	65%	35%	0.081	0.000034	0.005856
	66%	34%	0.081	0.000035	0.005884
	67%	33%	0.081	0.000035	0.005914
	68%	32%	0.081	0.000035	0.005945
	69%	31%	0.081	0.000036	0.005977
	70%	30%	0.080	0.000036	0.006011
	71%	29%	0.080	0.000037	0.006046
	72%	28%	0.080	0.000037	0.006082
	73%	27%	0.080	0.000037	0.006119
	74%	26%	0.080	0.000038	0.006158
	75%	25%	0.080	0.000038	0.006197
	76%	24%	0.080	0.000039	0.006238
	77%	23%	0.079	0.000039	0.006280
	78%	22%	0.079	0.000040	0.006323
	79%	21%	0.079	0.000041	0.006367
	80%	20%	0.079	0.000041	0.006412
	81%	19%	0.079	0.000042	0.006458
	82%	18%	0.079	0.000042	0.006505
	83%	17%	0.078	0.000043	0.006552
	84%	16%	0.078	0.000044	0.006601
	85%	15%	0.078	0.000044	0.006651
	86%	14%	0.078	0.000045	0.006702
	87%	13%	0.078	0.000046	0.006754
	88%	12%	0.078	0.000046	0.006806
	89%	11%	0.078	0.000047	0.006860
	90%	10%	0.077	0.000048	0.006914
	91%	9%	0.077	0.000049	0.006969
	92%	8%	0.077	0.000049	0.007025
	93%	7%	0.077	0.000050	0.007081
	94%	6%	0.077	0.000051	0.007138
	95%	5%	0.077	0.000052	0.007197
	96%	4%	0.077	0.000053	0.007255
	97%	3%	0.076	0.000054	0.007315
	98%	2%	0.076	0.000054	0.007375
	99%	1%	0.076	0.000055	0.007436
	100%	0%	0.076	0.000056	0.007497