Jin, age 29, is beginning to contemplate his financial future. Right now, he lives in a metro city where he has to walk to work. Although he loves the excitement of the city, he wants to buy a van as he has always dreamed of becoming a digital nomad. His goal is to begin saving for this objective right away. Jin has identified three possible portfolios that might be appropriate choices as he begins investing to reach his objective. Each portfolio consists of the following stocks, bonds, and cash assets. I Portfolio A 10% cash Portfolio B 15% cash Portfolio C 20% cash 20% bonds 40% bonds 50% bonds 70% stocks 45% stocks 30% stocks Assume that the average return of each asset is as follows: Stocks 10%, bonds 5%, and cash 2%. Portfolio A Portfolio B Portfolio C Asset Rate of Class Asset Weighted Return Asset Weighted Allocation Return¹ Asset Weighted Return¹ Allocation Allocation Return¹ Cash 2% 10% (a) 15% (d) 20% (g) Bonds 5% 20% (b) 40% (e) 50% (h) Stocks 10% 70% (c) 45% (f) 30% (i) Portfolio Return² (1) (11) *Note1¹: Weighted Return (Asset Class Rate of Return) x (Asset = Allocation) Note2: Portfolio Return = Sum of Portfolio's Weighted Return. 1. Calculate the weighted average rate of return for each portfolio. Which of the following is correct? (Hint: you need to calculate weighted returns of (a)-(i). Then identify portfolio returns of (1), (II), and (III)). Portfolio A: 8.2%, Portfolio B: 6.8%, Portfolio C: 5.9% Portfolio A: 8%, Portfolio B: 6.4%, Portfolio C: 5.4% Portfolio A: 7 %, Portfolio B: 4.5%, Portfolio C: 3% Portfolio A: 7.3%, Portfolio B: 6.3%, Portfolio C: 5.45%