To determine the portfolios' levels of risk from highest to lowest, let's analyze the information provided for each portfolio and their associated investments.
1. Calculate the total risk for each portfolio:
- Portfolio 1:
- Stock in Large, Old Corporation: \[tex]$500
- Stock in Emerging Company: \$[/tex]5,000
- U.S. Treasury Bond: \[tex]$3,000
- Certificate of Deposit: \$[/tex]500
- Total Risk for Portfolio 1:
[tex]\[
500 + 5000 + 3000 + 500 = 9000
\][/tex]
- Portfolio 2:
- Stock in Large, Old Corporation: \[tex]$2,000
- Stock in Emerging Company: \$[/tex]500
- U.S. Treasury Bond: \[tex]$500
- Certificate of Deposit: \$[/tex]6,000
- Total Risk for Portfolio 2:
[tex]\[
2000 + 500 + 500 + 6000 = 9000
\][/tex]
- Portfolio 3:
- Stock in Large, Old Corporation: \[tex]$2,000
- Stock in Emerging Company: \$[/tex]1,000
- U.S. Treasury Bond: \[tex]$1,000
- Certificate of Deposit: \$[/tex]3,000
- Total Risk for Portfolio 3:
[tex]\[
2000 + 1000 + 1000 + 3000 = 7000
\][/tex]
2. Compare the total risk levels of the three portfolios:
- Portfolio 1: \[tex]$9,000
- Portfolio 2: \$[/tex]9,000
- Portfolio 3: \[tex]$7,000
3. Order the portfolios from highest to lowest risk:
- Both Portfolio 1 and Portfolio 2 have the highest and equal risk levels of \$[/tex]9,000.
- Portfolio 3 has the lowest risk level of \$7,000.
Thus, the correct ranking of the portfolios' levels of risk from highest to lowest is:
Portfolio 1, Portfolio 2, Portfolio 3
So, the closest matching choice from the given options is:
```
Portfolio 1, Portfolio 2, Portfolio 3
```
