14. Markowitz Portfolio Model. Consider the stock return scenarios for Apple Computer

(APPL), Advanced Micro Devices (AMD), and Oracle Corporation (ORCL) shown in the following table:

Wedding 1 2 3 4 5 6 7 8 APPL 239.80 10.10 124.90 151.80 258.30 14.30 241.90 57.10 AMD 242.50 13.60 56.90 36.70 234.80 267.40 183.60 6.30 ORCL 210.20 137.90 170.60 16.60 240.70 230.30 15.20 20.60 StockReturn1

a. Develop the Markowitz portfolio model for these data with a required expected return of 25%. Assume that the eight scenarios are equally likely to occur.

b. Solve the model developed in part (a).

c. Vary the required return in 1% increments from 25% to 30% and plot the efficient frontier.