Problem 5 James Smith is a financial advisor. He is preparing a portfolio of stocks for one of his clients. The client would like to minimize risk while maintaining a minimum expected return. The risk of a stock is measured by its beta value, where higher values of beta indicate higher risk. James has identified five stocks to include in the portfolio. He would like to minimize the beta of the portfolio. The table below shows the expected return and beta for each of the five stocks. The portfolio beta is calculated as the weighted average of the betas of the five stocks, where the weights are the percentages of each stock allocated to the portfolio. The minimum expected return should be 10%, and no stock should make up more than 30% of the portfolio. What percentage of the portfolio should be invested in each stock to meet the requirements identified above? 1 12.0 9.5 14.0 13.0 Stock Expected return (% Beta 1.25 0.8 0.5 1.35 1.30 Formulate this problem as a linear program problem. Create a separate worksheet in Excel and type the formulation in a text box in this worksheet. Problem 6 Use Solver in Excel to obtain a solution to Problem 5