(a) Develop a model that minimize 0_ 2 0. Then make the objectiv Let FS = proportion of portf IB = proportion of portf LG = proportion of portf LV = proportion of portf SG = proportion of portf SV = proportion of portf R = the expected retur R. = the return of the p 5 Min 5 5=1 S.t. = 21 048(a) Develop a model that minimizes semivariance for the Hauck Financial data given in the file HauckData with a required return of 10%. ( Assume that the five planning scenarios in the Hauck Financial Services model are equally likely to occur. Hint: Modify model (8.10)-(8.19). Define a variable d for each scenario and let d 2 R - R with do 2 0. Then make the objective function: Min = > d, 2.) Let FS = proportion of portfolio invested in the foreign stock mutual fund IB = proportion of portfolio invested in the intermediate-term bond fund LG = proportion of portfolio invested in the large-cap growth fund LV = proportion of portfolio invested in the large-cap value fund SG = proportion of portfolio invested in the small-cap growth fund SV = proportion of portfolio invested in the small-cap value fund R = the expected return of the portfolio R = the return of the portfolio in year s. Min - s.t. 21.048 Check which variable(s) should be in your answer. 9.140 R2 Check which variable(s) should be in your answer. R3 6.5587 Check which variable(s) should be in your answer. RA = 7.656 Check which variable(s) should be in your answer. RS 5.568 Check which variable(s) should be in your answer. FS + IB + LG + LV + SG + SV = 1 CRS = R 1 2 R - 0.21048 X Check the subscript of your variable(s). d2 2 R - 0.09140 X Check the subscript of your variable(s). 3 2 R - 0.065587 X Check the subscript of your variable(s). d4 2 R - 0.07656 Check the subscript of your variable(s). 15 2 R - 0.05568 X Check the subscript of your variable(s). R = 0.0999414 Activate Windows X Go to Settings to activate Windows. FS, IB, LG, LV, SG, SV 2 0FS, IB, LG, LV, SG, SV 2 0 (b) Solve the model developed in part (a) with a required expected return of 10%. (Round your answers to three decimal places.) FS = 10.000 18 = 0.400 LG = 0.600 LV = 0.000 XXX