Question: Good evening, please see the problem below and provide calculations...thank you. Problem 4 You currently have $1,000,000. You want to invest it in the following

Good evening, please see the problem below and provide calculations...thank you.

Good evening, please see the problem below and provide calculations...thank you. Problem

Problem 4 You currently have $1,000,000. You want to invest it in the following three assets: 10-year US Treasury bond with coupon rate 4.5%, Blandy and Gourmange stocks, which have the following historical annual returns: Year Bland Gourmange 26.0% 47.0% 15.0% -54.0% -14.0% 15.0% -15.0% 7.0% 2.0% -28.0% 10.0% 40.0% 22.0% 17.0% 30.0% 23.0% -32.0% -4.0% 28.0% 75.0% 28.6% 51.7% 16.5% -59.4% -15.4% 16.5% -16.5% 7.7% 2.2% -30.8% 11.0% 44.0% 62.2% 18.7% 33.0% -25.3% -35.2% 50.8% 4.4% 82.5% 23.4% 12.3% 13.5% -12.6% 48.6% 13.5% 13.5% 5.3% 1.8% 25.2% 9.0% 36.0% 18.8% 5.3% 27.0% 20.7% -28.8% -3.6% 25.2% 57.5% Your goal is to have the expected annual return of 7.6% with a minimum portfolio risk. How much money should you allocate to these three assets? What is the minimum portfolio risk (i.e., the standard deviation)

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