ror portfolio 1 portfolio 2 portfolio 3 -3.8% $700 $1,250 $1,025 2.1% $2,575 $1,700 $500 11.3% $220 $1,515…

Explanation:

Step1: Calculate total investment for Portfolio 1

$700 + 2575+220 + 1000+1430=$5925$

Step2: Calculate weighted - average ROR for Portfolio 1

$\frac{(- 3.8%\times700)+(2.1%\times2575)+(11.3%\times220)+(5.8%\times1000)+(1.6%\times1430)}{5925}$ $=\frac{(-0.038\times700)+(0.021\times2575)+(0.113\times220)+(0.058\times1000)+(0.016\times1430)}{5925}$ $=\frac{-26.6 + 54.075+24.86+58+22.88}{5925}=\frac{133.215}{5925}\approx2.25%$

Step3: Calculate total investment for Portfolio 2

$1250 + 1700+1515+1345+1675=$7485$

Step4: Calculate weighted - average ROR for Portfolio 2

$\frac{(-3.8%\times1250)+(2.1%\times1700)+(11.3%\times1515)+(5.8%\times1345)+(1.6%\times1675)}{7485}$ $=\frac{(-0.038\times1250)+(0.021\times1700)+(0.113\times1515)+(0.058\times1345)+(0.016\times1675)}{7485}$ $=\frac{-47.5+35.7 + 171.195+78.01+26.8}{7485}=\frac{264.205}{7485}\approx3.53%$

Step5: Calculate total investment for Portfolio 3

$1025 + 500+790+250+2500=$5065$

Step6: Calculate weighted - average ROR for Portfolio 3

$\frac{(-3.8%\times1025)+(2.1%\times500)+(11.3%\times790)+(5.8%\times250)+(1.6%\times2500)}{5065}$ $=\frac{(-0.038\times1025)+(0.021\times500)+(0.113\times790)+(0.058\times250)+(0.016\times2500)}{5065}$ $=\frac{-38.95 + 10.5+89.27+14.5+40}{5065}=\frac{115.32}{5065}\approx2.28%$

Step7: Compare the weighted - average RORs

$3.53%>2.28%>2.25%$, so Portfolio 2, Portfolio 3, Portfolio 1

Answer:

Portfolio 2, Portfolio 3, Portfolio 1