Analyze the risk and return patterns and diversification benefits.How do the portfolios’ performances compare to the SP 500’s?

– For the portfolios, compute the returns, standard deviations and coefficient of

risk variation.

– Analyze the risk and return patterns and diversification benefits.

– Based on the risk/return analysis, which portfolio selections are the most

profitable?

– How do the portfolios’ performances compare to the SP 500’s?

– What are the advantages and disadvantages of including international stocks

in the portfolio?

– If Mr. Smith chooses to include foreign stocks in the portfolio, how can he use

derivatives to hedge against currency risk which can be present from

international investing?