BUSINESS ANALYTICS USING SOLVER

A second version of the Markowitz portfolio model maximizes 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 given in the table.

Let FS - proportian of portfollo invested in the foreign stock mutuil fund is = proportion of porfolio imvested in the intermediate-term bond fund LG= proportion of portfolis invested in the large-cao prowth fund ZV = propertion of portfalio invested in the large-cap value fund SC: = propertion of portelio invested in the small-cap vowth fund SV= proportion of partfolio invested in the shall-cap value fune A - the expected return of the portelie H3 = the retum or the portfolio in vear s. MaxRs.t.R1=A2=R3=R4=RS=1S+18+2G+1V+SG+SV=51s=15Rn=R51n=13(RsR)215,10,1G,10,SG,SV (D) Solve the model developed in part (a). (Peund your ansers to three decimal places)