Part A: Create Minimum-Variance Portfolio & Optimal Portfolio for the set of 12 Asset classes detailed below. We are given information related to each class's respective Expected Return-E (r) & Standard Deviation. Following this data; the next table details the Var-CoVar Matrix between asset class pairs. Following finding these two portfolios in Part A, we will use this information to create an adjusted portfolio based on the findings in part A for a client with a specific risk-aversion appetite which is detailed in a table following Part B.

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PART A Var-covar matrix from the correlation matrix and std dev us_bd1 us_bd2 us_st1 us_st2 us_st3 dev_st1 dev_st2 dev_st3 a1_gold a2_pe a3_us_re a4_int_re Minium Variance Portfolio Optimal Portfolio "A" or Risk-Adversion peramter Portfolio Minium Variance Portfolio Optimal Portfolio "A" or Risk-Adversion peramter Portfolio us_bd1 0.01108858 0.0094409 0.01715733 0.01513108 0.01690111 0.01233344 0.01134245 0.01283469 0.01119044 0.01404619 0.01181749 0.01305118 us_bd1 E (r) us_bd2 us_st1 us_st2 us_st3 dev_st1 dev_st2 dev_st3 al_gold a2_pe a3_us_re a4_int_re 0.009440901 0.01715733 0.01513108 0.01690111 0.01233344 0.01134245 0.01283469 0.01119044 0.01404619 0.01181749 0.01305118 0.011140987 0.012801 0.01230107 0.0127224 0.01034418 0.00929104 0.01047048 0.01082854 0.01110877 0.00953637 0.01233709 0.012800999 0.02828919 0.02346038 0.02773925 0.01805539 0.01678531 0.01988636 0.01665508 0.02269483 0.01969967 0.01835385 0.012301074 0.02346038 0.02126992 0.02325047 0.01857705 0.01724319 0.01857461 0.01427276 0.01989888 0.01658714 0.01864609 0.012722395 0.02773925 0.02325047 0.02725635 0.01827725 0.01702407 0.01988835 0.01620406 0.02253231 0.01958934 0.01841425 0.010344182 0.01805539 0.01857705 0.01827725 0.02274222 0.02110005 0.01828208 0.00940223 0.01895082 0.01263266 0.0196553 0.009291043 0.01678531 0.01724319 0.01702407 0.02110005 0.01965458 0.01709212 0.00833963 0.01770554 0.01211197 0.01802925 0.010470478 0.01988636 0.01857461 0.01988835 0.01828208 0.01709212 0.01716403 0.01099642 0.01834008 0.01488126 0.01701182 0.010828543 0.01665508 0.01427276 0.01620406 0.00940223 0.00833963 0.01099642 0.01324367 0.01221283 0.01058685 0.01219394 0.011108774 0.02269483 0.01989888 0.02253231 0.01895082 0.01770554 0.01834008 0.01221283 0.02063692 0.01681344 0.01733086 0.00953637 0.01969967 0.01658714 0.01958934 0.01263266 0.01211197 0.01488126 0.01058685 0.01681344 0.0168216 0.01250912 0.012337086 0.01835385 0.01864609 0.01841425 0.0196553 0.01802925 0.01701182 0.01219394 0.01733086 0.01250912 0.01926562 ** NOTE Each of the three Portfolios must have weights that add up to 1 us_bd2 us_st1 us_st2 us_st3 dev_st1 Var Std dev Variance-Covariance Matrix SHR dev_st2 dev_st3 a1_gold a2_pe a3_us_re a4_int_re PART A Var-covar matrix from the correlation matrix and std dev us_bd1 us_bd2 us_st1 us_st2 us_st3 dev_st1 dev_st2 dev_st3 a1_gold a2_pe a3_us_re a4_int_re Minium Variance Portfolio Optimal Portfolio "A" or Risk-Adversion peramter Portfolio Minium Variance Portfolio Optimal Portfolio "A" or Risk-Adversion peramter Portfolio us_bd1 0.01108858 0.0094409 0.01715733 0.01513108 0.01690111 0.01233344 0.01134245 0.01283469 0.01119044 0.01404619 0.01181749 0.01305118 us_bd1 E (r) us_bd2 us_st1 us_st2 us_st3 dev_st1 dev_st2 dev_st3 al_gold a2_pe a3_us_re a4_int_re 0.009440901 0.01715733 0.01513108 0.01690111 0.01233344 0.01134245 0.01283469 0.01119044 0.01404619 0.01181749 0.01305118 0.011140987 0.012801 0.01230107 0.0127224 0.01034418 0.00929104 0.01047048 0.01082854 0.01110877 0.00953637 0.01233709 0.012800999 0.02828919 0.02346038 0.02773925 0.01805539 0.01678531 0.01988636 0.01665508 0.02269483 0.01969967 0.01835385 0.012301074 0.02346038 0.02126992 0.02325047 0.01857705 0.01724319 0.01857461 0.01427276 0.01989888 0.01658714 0.01864609 0.012722395 0.02773925 0.02325047 0.02725635 0.01827725 0.01702407 0.01988835 0.01620406 0.02253231 0.01958934 0.01841425 0.010344182 0.01805539 0.01857705 0.01827725 0.02274222 0.02110005 0.01828208 0.00940223 0.01895082 0.01263266 0.0196553 0.009291043 0.01678531 0.01724319 0.01702407 0.02110005 0.01965458 0.01709212 0.00833963 0.01770554 0.01211197 0.01802925 0.010470478 0.01988636 0.01857461 0.01988835 0.01828208 0.01709212 0.01716403 0.01099642 0.01834008 0.01488126 0.01701182 0.010828543 0.01665508 0.01427276 0.01620406 0.00940223 0.00833963 0.01099642 0.01324367 0.01221283 0.01058685 0.01219394 0.011108774 0.02269483 0.01989888 0.02253231 0.01895082 0.01770554 0.01834008 0.01221283 0.02063692 0.01681344 0.01733086 0.00953637 0.01969967 0.01658714 0.01958934 0.01263266 0.01211197 0.01488126 0.01058685 0.01681344 0.0168216 0.01250912 0.012337086 0.01835385 0.01864609 0.01841425 0.0196553 0.01802925 0.01701182 0.01219394 0.01733086 0.01250912 0.01926562 ** NOTE Each of the three Portfolios must have weights that add up to 1 us_bd2 us_st1 us_st2 us_st3 dev_st1 Var Std dev Variance-Covariance Matrix SHR dev_st2 dev_st3 a1_gold a2_pe a3_us_re a4_int_re PART A Var-covar matrix from the correlation matrix and std dev us_bd1 us_bd2 us_st1 us_st2 us_st3 dev_st1 dev_st2 dev_st3 a1_gold a2_pe a3_us_re a4_int_re Minium Variance Portfolio Optimal Portfolio "A" or Risk-Adversion peramter Portfolio Minium Variance Portfolio Optimal Portfolio "A" or Risk-Adversion peramter Portfolio us_bd1 0.01108858 0.0094409 0.01715733 0.01513108 0.01690111 0.01233344 0.01134245 0.01283469 0.01119044 0.01404619 0.01181749 0.01305118 us_bd1 E (r) us_bd2 us_st1 us_st2 us_st3 dev_st1 dev_st2 dev_st3 al_gold a2_pe a3_us_re a4_int_re 0.009440901 0.01715733 0.01513108 0.01690111 0.01233344 0.01134245 0.01283469 0.01119044 0.01404619 0.01181749 0.01305118 0.011140987 0.012801 0.01230107 0.0127224 0.01034418 0.00929104 0.01047048 0.01082854 0.01110877 0.00953637 0.01233709 0.012800999 0.02828919 0.02346038 0.02773925 0.01805539 0.01678531 0.01988636 0.01665508 0.02269483 0.01969967 0.01835385 0.012301074 0.02346038 0.02126992 0.02325047 0.01857705 0.01724319 0.01857461 0.01427276 0.01989888 0.01658714 0.01864609 0.012722395 0.02773925 0.02325047 0.02725635 0.01827725 0.01702407 0.01988835 0.01620406 0.02253231 0.01958934 0.01841425 0.010344182 0.01805539 0.01857705 0.01827725 0.02274222 0.02110005 0.01828208 0.00940223 0.01895082 0.01263266 0.0196553 0.009291043 0.01678531 0.01724319 0.01702407 0.02110005 0.01965458 0.01709212 0.00833963 0.01770554 0.01211197 0.01802925 0.010470478 0.01988636 0.01857461 0.01988835 0.01828208 0.01709212 0.01716403 0.01099642 0.01834008 0.01488126 0.01701182 0.010828543 0.01665508 0.01427276 0.01620406 0.00940223 0.00833963 0.01099642 0.01324367 0.01221283 0.01058685 0.01219394 0.011108774 0.02269483 0.01989888 0.02253231 0.01895082 0.01770554 0.01834008 0.01221283 0.02063692 0.01681344 0.01733086 0.00953637 0.01969967 0.01658714 0.01958934 0.01263266 0.01211197 0.01488126 0.01058685 0.01681344 0.0168216 0.01250912 0.012337086 0.01835385 0.01864609 0.01841425 0.0196553 0.01802925 0.01701182 0.01219394 0.01733086 0.01250912 0.01926562 ** NOTE Each of the three Portfolios must have weights that add up to 1 us_bd2 us_st1 us_st2 us_st3 dev_st1 Var Std dev Variance-Covariance Matrix SHR dev_st2 dev_st3 a1_gold a2_pe a3_us_re a4_int_re