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4.Financial planner Minnie Margin wishes to develop a mutual fund

Question : 4.Financial planner Minnie Margin wishes to develop a mutual fund : 1825497

4.Financial planner Minnie Margin wishes to develop a mutual fund portfolio based on the Markowitz portfolio model. She needs to determine the proportion of the portfolio to invest in each of the five mutual funds listed below so that the variance of the portfolio is minimized subject to the constraint that the expected return of the portfolio be at least 5%. Formulate the appropriate nonlinear program.

 

Annual Returns (Planning Scenarios)

Mutual Fund

Year 1

Year 2

Year 3

Year 4

International Stock

22.37

26.73

  4.86

  2.17

Large-Cap Value

15.48

19.64

11.50

?5.25

Mid-Cap Value

17.42

20.07

?4.97

?1.69

Small-Cap Growth

23.18

12.36

  3.25

  3.81

Short-Term Bond

  9.26

  8.81

  6.15

  4.04

Solution
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Solved
Marketing 1 Year Ago 10 Views
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