Susan Jones would like her investment portfolio to be selected from a combination of three stocks Alpha,

Question:

Susan Jones would like her investment to be selected from a combination of three stocks— Alpha, Beta, and Gamma. Let variables A, B, and G denote the percentages of the devoted to Alpha, Beta, and Gamma, respectively. Susan’s objective is to minimize the variance of the portfolio’s return, given by the following function:
3A2 + 2B2 + 2G2 + 2AB - l.LAG - 0.7BG
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...