Question: Refer to Problem 15. Use the model developed there to construct an efficient frontier by varying the maximum allowable variance from 20 to 60 in

Refer to Problem 15. Use the model developed there to construct an efficient frontier by varying the maximum allowable variance from 20 to 60 in increments of = and solving for the maximum return for each. Plot the efficient frontier and compare it to Figure 10.12.
In Problem 15

Annual Return (%) Year 3 Mutual Fund Year1 10.06 17.64 32.41 32.36 33.44 24.56 Year 2 13.12 3.25 18.71 20.61 19.40 25.32 Year 4 Year 5 Foreign Stock Intermediate-Term Bond Large-Cap Growth Large-Cap Value Small-Cap Growth Small-Cap Value 13.47 45.42 2193 7.36 23.26 5.37 -9.02 17.31 1.51 146 531 7.06 543 12.93 3.85 58.68 -6.70

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