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 Service data Click on the datafile logo to reference the data Annual Return ( ) Mutual Fund Year 1 Year 2 Year 3 Year 4 Year 5 Foreign Stock 10 06 13 12 13 47 45 42 21 93 Intermediate Term Bond 17 64 3 25 7 51 1 33 7 36 Large Cap Growth 32 41 18 71 33 28 41 46 23 26 Large Cap Value 32 36 20 61 12 93 7 06 5 37 Small Cap Growth 33 44 19 40 3 85 58 68 9 02 Small Cap Value 24 56 25 32 6 70 5 43 17 31 (b) Solve the model developed in part (a) If required, round your answers to two decimal places If your answer is zero, enter 0 FS IB LG LV SG SV Portfolio Expected Return

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Question: 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

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 Service data.

Click on the datafile logo to reference the data.

	Annual Return (%)
Mutual Fund	Year 1	Year 2	Year 3	Year 4	Year 5
Foreign Stock	10.06	13.12	13.47	45.42	-21.93
Intermediate-Term Bond	17.64	3.25	7.51	-1.33	7.36
Large-Cap Growth	32.41	18.71	33.28	41.46	-23.26
Large-Cap Value	32.36	20.61	12.93	7.06	-5.37
Small-Cap Growth	33.44	19.40	3.85	58.68	-9.02
Small-Cap Value	24.56	25.32	-6.70	5.43	17.31

(b)

Solve the model developed in part (a).

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

FS	%
IB	%
LG	%
LV	%
SG	%
SV	%

Portfolio Expected Return =

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