Question: Please show me how to do this in excel. Pat McCormack, a financial advisor for Investors R Us, is evaluating two stocks in a particular
Please show me how to do this in excel.


Pat McCormack, a financial advisor for Investors R Us, is evaluating two stocks in a particular industry. He wants to minimize the variance of a portfolio consisting of these two stocks, but he wants to have an expected return of at least 9%. After obtaining historical data on the variance and returns, he develops the following nonlinear program Minimize portfolio variance = 0.16x2 + 0.2XY + 009Y2 subject to (all funds must be invested) X + Y = 1 0.08Y 0.09 (return on the investment) 0.11X X, Y20 where X = proportion of money invested in stock 1 Y= proportion of money invested in stock 2 Solve this using Excel and determine how much to invest in each of the two stocks. What is the return for this portfolio? What is the variance of this portfolio
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