Question: this is actually Operation Research. Answer all in clear plis thankyou An investment adviser is helping a couple plan a retirement portfolio. The adviser has
An investment adviser is helping a couple plan a retirement portfolio. The adviser has recom- mended three stocksAllied Electronics, Bank United, and Consolidated Computers. Following are the annual return and variance for each stock and the covariance between stocks: Stock Allied Electronics Bank United Consolidated Computers Annual Return .14 .10 Covariance .10 04 .12 .08 Covariance Stock Combination (I. A,B AC B.C .7 3 The couple wants a total portfolio return of at least 11. Determine the proportion of cach stock to include in the portfolio to minimize the overall risk
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
