Question: Foreign Stock 1 0 . 0 6 1 3 . 1 2 1 3 . 4 7 4 5 . 4 2 - 2 1

Foreign Stock10.0613.1213.4745.42-21.93Intermediate-Term Bond17.643.257.51-1.337.36Large-Cap Growth32.4118.7133.2841.46-23.26Large-Cap Value32.3620.6112.937.06-5.37Small-Cap Growth33.4419.403.8558.68-9.02Small-Cap Value24.5625.32-6.705.4317.31(a)Construct this version of the Markowitz model for a maximum variance of 34. Let:FS = proportion of portfolio invested in the foreign stock mutual fundIB = proportion of portfolio invested in the intermediate-term bond fundLG = proportion of portfolio invested in the large-cap growth fundLV = proportion of portfolio invested in the large-cap value fundSG = proportion of portfolio invested in the small-cap growth fundSV = proportion of portfolio invested in the small-cap value fund = the expected return of the portfolioRs = the return of the portfolio 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 (Example: -300). If the constant is "1" it must be entered in the box. If your answer is zero enter 0. Max s.t. FS+ IB+ LG+ LV+ SG+ SV- Select your answer ->=Item 7 R 1 FS+ IB+ LG+ LV+ SG+ SV- Select your answer ->=Item 14 R 2 FS+ IB+ LG+ LV+ SG+ SV- Select your answer ->=Item 21 R 3 FS+ IB+ LG+ LV+ SG+ SV- Select your answer ->=Item 28 R 4 FS+ IB+ LG+ LV+ SG+ SV- Select your answer ->=Item 35 R 5 FS+ IB+ LG+ LV+ SG+ SV- Select your answer ->=Item 42- Select your answer ->=Item 45- Select your answer ->=Item 47 FS, IB, LG, LV, SG, SV- Select your answer ->=Item 49(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 =%
a) Construcs this version of the Markowitz model for a rusimum variance of 34.
Let:
FS = proportion of porffolio invested in the foreign stock mutual fund
IE = proportion of portfolis invested in the intermedate-tem band fund
\( L Q=\) proportion of portiolio invested in the large-cap growth fund.
\( L V=\) proportion of portiolio inverted in the large-cap value fund
\( S G=\) proportion of portfolio imested in the mallscap growth fund
\( S V=\) proportion of portfolio invested in the small-cap value fund
B \(=\) the expected return of the portfolio
\( R_{p}=\) the retuith of the portfolio in years (a) Construct this version of the Markowitz model for a maximum variance of 34.
Let:
FS = proportion of portfolio invested in the foreign stock mutual fund
\( I B=\) proportion of portfolio invested in the intermediate-term bond fund
LG = proportion of portfolio invested in the large-cap growth fund
\( L V=\) proportion of portfolio invested in the large-cap value fund
\( S G=\) proportion of portfolio invested in the small-cap growth fund
\( S V=\) proportion of portfolio invested in the small-cap value fund
\(\bar{R}=\) the expected return of the portfolio
\( R_{S}=\) the return of the portfolio in years (b) Solve the model developed in part (a).
If required, round your answers to two decimal places. If your answer is zero, enter "0".
Portfolio Expected Return =\%
Foreign Stock 1 0 . 0 6 1 3 . 1 2 1 3 . 4 7 4 5 .

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