The file InvestmentData.xlsx that accompanies this book contains data on the average returns and covariances for 15

Question:

The file InvestmentData.xlsx that accompanies this book contains data on the average returns and covariances for 15 different mutual funds. Use this data to answer the following questions:

a. Create the efficient frontier associated with this collection of investments assuming that for each possible level of return an investor wishes to minimize risk.

b. What portfolio has the highest expected return? What portfolio variance is associated with this portfolio?

c. What portfolio has the smallest expected return? What portfolio variance is associated with this portfolio?

d. Suppose an investor wanted a portfolio with an expected return of 18% using this set of investments. What portfolio would you recommend?

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...