Use Excel Solve

Using Excel Solver to construct a Portfolio Frontier with ve risk},r assets (A, E, C. D, and E), where F and E are the mean return and variancecovariance of returns on these assets. A B C D E 3 $32 A 0.04 sans 0.004 0.04 0.03 p: 0 use 32 3 cans am cm {1.02 anus D [112 ' c: 0.004 am cm 0.015 are E 0.17 c [1.04 [1.02 0.1115 cases are E 0.03 [1.003 are are use Hint: 1. Enter p. and E on Excel spreadsheet. . Set the mean return on the portfolio pp at a required rate, sa},r r1 = [1.02 . Enter some initial values for the portfolio weights on A. E, C. D, and E assets. . Calculate the variance of portfolio returns 0': accordineg based on Step 1 35 3. . Calculate the standard deviation HP of portfolio returns based on Step 4. . Calculate mean return on the portfolio ,up accordineg based on Step 2 all: 3. 41:54:11an . Activate Solver {from Data]. if Solver is not installed, you can nd and install it from 'Addins' in Insert. 3. In setting the Solver parameters, type in the cell address of HP in 'Set Chjective' window. 9. rI'y'lzle in the cell addresses for the portfolio weights set in Step 3 in '13)? Changing Variable Cells' window. 1U. Add the constraint {using cell address in 'Suhject to the Constraints' window}: ppinStep=inStep 2. 11. Click 'Solve' tab and the optimization will he done by replacing the cells for portfolio weights in Step 3. 12. Go back to Step 1 and set a to another value, say a = 0.04. 13. Repeat Step 2 through Step 11 to obtain the second optimal portfolio. 14. Repeat All Steps until at least 3 optimal portfolios are solved