Question 1 In this question, you will consider the role of a stock portfolio broker. When designing a stock portfolio, it is important to diversify your holdings so as to distribute risk and growth. Ideally, you want a mixture of stocks. As a stock broker, youll offer your clients the option to buy from a set number of well curated portfolios. In MAT 133, there are three corporations that well consider: Holden Aeronautics, Hossain Botanicals, and Yusun Corporation. In reality, a stock broker would manage portfolios with hundreds or thousands of stocks.

After extensive research, and forecasting, it has been determined that the following portfolios have a good mixture of risk and growth:

Portfolio A : One share of Holden Aeronautics and one share of Hossain Botanicals. Portfolio B : One share of Hossain Botanicals. Portfolio C : One share of Holden Aeronautics and one share of Yusun Corporation.

1. Show that Parker could ask for any Portfolio Y and there would be some linear combination of Portfolios A, B, C which would add up to Portfolio Y.