8. Reconsider the portfolio optimization problem considered in Section 8.5, where the goal was to select the portfolio that beat the market for the largest number of quarters over the last six years. a. Using the naive solution (20 percent in each stock) as a starting point, apply Evolutionary Solver to optimize the portfolio again when considering the data for the first three years only [01 2011 through (14 2013). Answer: b. For how many quarters does this same portfolio beat the market for the next three years {(11 2014 through (14 2016)? Answer: c. {Open-Ended Question) Comment on the results from parts a and b. Answer: Beating the Market (Evolutionary Solver) Beat Market Quarter Year DIS BA GE PG MCD Return Market? (NYSE) Q4 2016 13.10% 19.08% 7.47% -5.59% 6.34% 3.13% Q3 2016 -4.38% 2.28% -5.17% 1.32% -3.39% 2.21% Q2 2016 -1.50% 3.14% -0.23% 9.35% -3.55% 2.77% Q1 2016 -5.49% -11.39% 2.87% 4.55% 7.19% 0.63% Q4 2015 3.47% 11.10% 24.46% 11.37% 20.84% 3.51% Q3 2015 -9.94% -4.99% -4.25% -7.30% 4.55% -9.31% Q2 2015 8.82% -6.98% 8.03% -3.75% -1.58% -0.86% Q1 2015 11.37% 16.18% -0.94% -9.41% 4.90% 0.55% Q4 2014 7.14% 2.63% -0.42% 9.61% -0.30% 1.27% Q3 2014 3.83% 0.72% -1.67% 7.41% -5.07% 2.52% Q2 2014 7.08% 1.96% 2.30% -1.71% 3.59% 4.29% Q1 2014 4.81% -7.54% 6.83% -0.25% 1.89% 1.23% Q4 2013 19.93% 16.59% 18.33% 8.53% 1.70% 8.10% Q3 2013 2.12% 15.23% 3.80% -1.08% -2.04% 5.58% Q2 2013 11.18% 19.93% 1.08% 0.65% 0.09% 0.06% Q1 2013 14.07% 14.66% 11.06% 14.42% 13.92% 7.86% Q4 2012 -3.29% 8.94% -6.74% -1.31% -2.99% 2.33% Q3 2012 7.78% -5.76% 9.81% 14.22% 4.46% 5.76% Q2 2012 10.80% 0.49% 5.01% -8.10% -9.05% -4.94% Q1 2012 16.74% 1.99% 13.05% 1.56% -1.53% 9.76% Q4 2011 26.43% 21.99% 18.83% 6.45% 15.11% 10.09% Q3 2011 -22.76% -17.60% -18.56% 0. 19% 4.84% -18.36% Q2 2011 -9.39% 0.54% -5.13% 4.07% 11.64% -1.02% Q1 2011 14.87% 13.94% 10.39% -3.55% -0.06% 5.54% 0% 0% 0% 0% 0%