Formulate and solve the Markowitz portfolio optimization model to minimize portfolio variance subject to a required expected return of 10 percent that was defined in equations (8.10) through (8.19) using the data from Problem 13. In this case, nine scenarios correspond to the yearly returns from Years 1 through 9. Treat each scenario as being equally likely and use the scenario returns that were calculated in Problem 13.
Data from Problem 13

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FIGURE 8.15 YEARLY RETURNS FOR AAPL, AMD, AND ORCL AAPL Year Adj. Close Adj. Close Adj. Close Return 0.0962 0.8104 0.9236 0.8753 0.1340 -0.5432 0.4517 1.2263 0.6749 AAPL AMD ORCL ORCL Ret Return -0.5537-0.1074 0.1272 0.8666 0.4506 0.9956 0.3124 0.1533 -0.4270-0.5230 1.1194 -0.3610 1.0424 0.1416 0.0613-0.0065 0.9729 -0.0912 AMD 4.16 4.58 10.3 25.94 10.81 12.36 7.18 11.28 38.45 75.51 17.57 10.1 11.47 18 24.6 16.05 5.24 14.86 15.8 41.8 4.32 3.88 9.23 24.98 29.12 17.26 12.03 13.86 13.77 12.57 4 10 Data Source: CSI Web site: www.csidata.com