Reconsider Prob. 13.1-3 and its quadratic programming model.

(a) Display this model [including the values of R(x) and V(x)] on an Excel spreadsheet.

(b) Solve this model for four cases: minimum acceptable expected return 13, 14, 15, 16.

(c) For typical probability distributions (with mean  and variance

2

) of the total return from the entire portfolio, the probability is fairly high (about 0.8 or 0.9) that the return will exceed

  , and the probability is extremely high (often close to 0.999) that the return will exceed   3. Calculate   

and   3 for the four portfolios obtained in part (b). Which portfolio will give the highest  among those that also give

    0?