This portfolio consists of several stocks and bonds, which have been managed and diversified for optimum returns based on a variety financial and accounting principles.

1. PORTFOLIO OPTIMIZATIONPORTFOLIO OPTIMIZATION Shawn M Saran
INPUTS EXPECTED STANDARD 1+ Exp. Rate
RETURN DEVIATION
Riskless Rate ® 5.00% 0.00% 105.00%
LB Aggregate Bond 9.25% 6.34% 109.25% 100.00%
IA Monthly Convertible Bond 11.81% 12.96% 111.81% 100.00%
IA All Value 14.55% 16.23% 114.55% 100.00%
S&P 500 14.72% 17.49% 114.72% 100.00%
IA Small Stock 15.25% 20.75% 115.25% 100.00%
MSCI EAFE 13.97% 25.50% 113.97% 100.00%
CORRELATIONS
1 2 3 4 5 6
1 100.00% 58.00% 93.00% 56.00% 82.00% 32.00%
2 58.00% 100.00% 72.00% 34.00% 74.00% 11.00%
3 93.00% 72.00% 100.00% 55.00% 79.00% 40.00%
4 56.00% 34.00% 55.00% 100.00% 64.00% 20.00%
5 82.00% 74.00% 79.00% 64.00% 100.00% 24.00%
6 32.00% 11.00% 40.00% 20.00% 24.00% 100.00%
STANDARD DEVIATION (RISK FACTOR)
RISKY ASSETS 1 2 3 4 5 6
6.34% 12.96% 16.23% 17.49% 20.75% 25.50%
VARIANCES & CO-VARIANCES
1 2 3 4 5 6
1 0.40% 0.48% 0.96% 0.62% 1.08% 0.52%
2 0.48% 1.68% 1.51% 0.77% 1.99% 0.36%
3 0.96% 1.51% 2.63% 1.56% 2.66% 1.66%
4 0.62% 0.77% 1.56% 3.06% 2.32% 0.89%
5 1.08% 1.99% 2.66% 2.32% 4.31% 1.27%
6 0.52% 0.36% 1.66% 0.89% 1.27% 6.50%
Statistical non-rounded results from excel:Statistical non-rounded results from excel:
A 2315.6626691
B 2472.9538545
C 2641.2551757
DELTA 755.24320452
GAMMA 0.0240917112
Graphing Data
STANDARD
DEVIATION
EFFICIENT FRONTIER
CURVE
INDIVIDUAL
ASSET
OPTIMAL COMBO
(RISKIEST ASSETS IN
TANGENT PORTFOLIO)
LB Aggregate Bond 6.34% 9.25% 113.04%
IA Monthly Convertible Bond 12.96% 11.81% 30.46%
IA All Value 16.23% 14.55% -39.89%
S&P 500 17.49% 14.72% 10.46%
IA Small Stock 20.75% 15.25% -19.16%
MSCI EAFE 25.50% 13.97% 5.09%
INDEX Exp. Return
0 25.00% -7.44%
1 22.52% -6.01%
2 20.04% -4.59%
3 17.56% -3.17%
4 15.09% -1.74%
5 12.63% -0.32%
6 10.18% 1.10%
7 7.76% 2.52%
8 5.40% 3.95%
9 3.24% 5.37%
10 2.08% 6.79%
11 3.24% 8.22%
12 5.40% 9.64%
13 7.76% 11.06%
14 10.18% 12.48%
15 12.63% 13.91%
16 15.09% 15.33%
17 17.56% 16.75%
18 20.04% 18.17%
19 22.52% 19.60%
20 25.00% 21.02% EFFICIENT TRADE OFF LINEEFFICIENT TRADE OFF LINE
OPTIMAL COMBINATION 2.49% 7.58%
EFFICIENT TRADE OFF LINE 0.00% 0.00% 5.00%
100.00% 2.49% 7.58%
200.00% 4.98% 10.16%

2. Series 1 Series 2 Series 3 Series 4 Series 5 Series 6
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0.0634 0.0634 0.0634 0.0925
0.1296 0.1296 0.1296 0.1181
0.1623 0.1623 0.1623 0.1455
0.1749 0.1749 0.1749 0.1472
0.2075 0.2075 0.2075 0.1525
0.255 0.255 0.255 0.1397
0.25 -0.0743538874 0.25 0.25
0.2251822594 -0.0601260074 0.2251822594 0.2251822594
0.2003882807 -0.0458981273 0.2003882807 0.2003882807
0.175628128 -0.0316702473 0.175628128 0.175628128
0.1509184507 -0.0174423672 0.1509184507 0.1509184507
0.1262888806 -0.0032144872 0.1262888806 0.1262888806
0.1017975792 0.0110133929 0.1017975792 0.1017975792
0.0775756151 0.0252412729 0.0775756151 0.0775756151
0.0539867405 0.039469153 0.0539867405 0.0539867405
0.0324426172 0.053697033 0.0324426172 0.0324426172
0.0207808043 0.067924913 0.0207808043 0.0207808043
0.0324426172 0.0821527931 0.0324426172 0.0324426172
0.0539867405 0.0963806731 0.0539867405 0.0539867405
0.0775756151 0.1106085532 0.0775756151 0.0775756151
0.1017975792 0.1248364332 0.1017975792 0.1017975792
0.1262888806 0.1390643133 0.1262888806 0.1262888806
0.1509184507 0.1532921933 0.1509184507 0.1509184507
0.175628128 0.1675200734 0.175628128 0.175628128
0.2003882807 0.1817479534 0.2003882807 0.2003882807
0.2251822594 0.1959758335 0.2251822594 0.2251822594
0.25 0.2102037135 0.25 0.25
0.024922684 0.024922684 0.0757823188 0.024922684
0 0 0.05 0
0.024922684 0.024922684 0.0757823188 0.024922684
0.049845368 0.049845368 0.1015646376 0.049845368
-0.150
-0.075
0
0.075
0.150
0.225
0.300
0 0.075 0.150 0.225 0.300
EFFICIENT TRADE OFF LINE & EFFICIENT FRONTIER CURVE
Series 1
Series 2
Series 3
Standard Deviation
Expected
Return
Shawn M Saran

3. -1.25
0
1.25
2.50
3.75
5.00
1 2 3 4 5 6
PORTFOLIO WEIGHTS IN OPTIMAL “TANGENT” PORTFOLIO
Series 1
Asset Number
Portfolio
Weights