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Case Study #3Barney’s investment portfolio is currently worth around $250,000. Over the years, he has continuously chosen mutual funds that have a high expense ratio. His theory is that paying higher fees will get him a better-quality manager who will generate better returns. However, in 15 years, Barney has made an average of only 6.5% annually on his portfolio, while the general market has returned around 10% annually. He feels that he should be at least equaling the market returns after expenses, if not beating the market. Barney’s risk tolerance suggests that he should be properly allocated in 65% stock funds, 25% bond funds, and 10% cash (money market). Go to and click the link for Personal Investors. Near the bottom of the page, click the link Browse Vanguard’s complete mutual fund lineup. Make sure you are listing funds by asset class.Your task is to construct a mutual fund portfolio for Barney using the Vanguard mutual funds you find on this website. (Note: Admiral shares have a minimum investment of $50,000. Do not select Admiral shares unless you meet this threshold.) Make sure you follow his allocation percentages and keep in mind his target portfolio return of 10% ($25,000) after expenses. You are required to have at least 3 stock funds, 2 bond funds, and 1 money market fund.Fill out the Excel spreadsheet for your portfolio. The columns in pink are formulas. DO NOT TYPE ANYTHING IN THE PINK COLUMNS. They will calculate automatically.Then, explain your reasoning for each fund in the table below.Fund NameReasons for Selection ................
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