Question: 8 . 8 . Reconsider the portfolio selection example given in Section 8 . 2 . A fourth stock ( Stock 4 ) now has

8.8. Reconsider the portfolio selection example given in Section 8.2. A fourth stock (Stock 4) now has been found that gives a
good balance between expected return and risk. Using the same units as in Table 8.2, its expected return is 17% and its risk is
18%. Its joint risk per stock with Stocks 1,2, and 3 is -0.015,-0.025, and 0.003, respectively.
a. Still using a minimum acceptable expected return of 18%, formulate the revised quadratic programming model in
algebraic form for this problem.
b. Display and solve this model on a spreadsheet.
c. Develop a revision of the parameter analysis report in Figure 8.14 for this revised problem.
8 . 8 . Reconsider the portfolio selection

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