A Question $14(15$ points$)$ Retbie quetion

A second version of the Markowitz portfolio model maximizes expected return subject to a constraint that the variance of the portfolio must be less than or equal to some specified amount.

Consider the Hauck Financial Portfolio Problem.

Click on here to reference the data.

$\backslash$table$[[$Mutual Fund,Year $1,$Year $2,$Year $3,$Year $4,$Year $5],[$Forcign Stock,$10\mathrm{.}06,13\mathrm{.}12,13\mathrm{.}47,45\mathrm{.}42,-21\mathrm{.}93],[$Intermediate$-$Term Bond,$17\mathrm{.}64,3\mathrm{.}25,7\mathrm{.}51,-1\mathrm{.}33,7\mathrm{.}36],[$Large$-$Cap Growth,$32\mathrm{.}41,18\mathrm{.}71,33\mathrm{.}28,41\mathrm{.}46,-23\mathrm{.}26],[$Large$-$Cap Value,$32\mathrm{.}36,20\mathrm{.}61,12\mathrm{.}93,7\mathrm{.}06,-5\mathrm{.}37],[$Small$-$Cap Growth,$31\mathrm{.}44,19\mathrm{.}40,3\mathrm{.}85,58\mathrm{.}68,-9\mathrm{.}02],[$Small$-$Cap Valoe,$24\mathrm{.}56,25\mathrm{.}32,-6\mathrm{.}70,5\mathrm{.}43,17\mathrm{.}31]]$

$($a$)$ Construct this version of the Markowitz model for a maximum variancy of $36.$

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

IV $=$ proportion of portfolio invested in the large'cap value fund

$56=$ proportion of portfolio invested in the smatt$-$cap growth fund

$5$ V $=$ proportion of portfollo invested in the small$-$cap value fund

R $(R-$bar$)=$ the expected return of the portfolio

$R=$ the return of the portfollo in years

If required, round your answers to two decimal places. For subtractive or negative numbers use a minus sign even if there is a sign before the blank $($Examples $-300).$ If the constant is $"1"$ It must be entered in the box. If your anower is zero enter $"0".$

$Ma\frac{x}{b}ar(R)$

If required, round your answers to two decimal places. For subtractive or negative numbers use a minus sign even if there is a sign before the blank $($Example: $-300).$ If the constant is $"1"$ it must be entered in the box. If your answer is zero enter $"0".$

$Ma\frac{x}{b}ar(R)$

s$.$t$.$

$$ FS $$ IB $$ LG $$ LV

$$ SG $5V=R_1$

$$ FS $18$ LG $$ LV SG $*sV=R_2$

$$ FS $18$ LG $*$ LV

$$ SG $5V=R_3$

$$ FS $18$ LG $$ LV SG $5V=R_4$

$$ FS $*1B$

$SV=R_5$ LG $*$ LV SG

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

If required, round your answers to two decimal places. If your answer is zero, enter $"0"$

$\%$ in FS

$\%$ in IB

$$ Winar

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

If required, round your answers to two decimal places. If your answer is zero, enter $"0".$

$\%$ in FS

$\%$ in IB

$\%$ in LG

$\%$ in LV

$\%ln$ SG

$\%$ in $5$V

Portfolio Expected Return $=\%$

Can someone please help me solve part A and part B