Using the ETF data from the previous problem:
a. Create a variance/covariance matrix using the data from the table. Use the matrix algebra functions or fill in every cell with the COVAR function.
b. Using the Solver, find the weights for the minimum variance portfolio.
c. Using the Solver, find the weights for four additional portfolios that are on the efficient frontier. Note that the target return for portfolio 5 should be equal to that of the ETF with the highest return.
d. Create a chart of the efficient frontier. Now add a new series that shows the returns and standard deviations of the individual ETFs.
How does the efficient frontier compare to the ETFs?