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7. Herbert Investments wants to prepare a portfolio comprising three stocks. They would like to earn at least a 9% return at lowest possible risk. MEAN RETURN STDEV OF RETURN (0) CORRELATIONS (R) LLR LZR TFE LLR 0.07 0.05 LLR 1 0.7 0.3 LZR 0.09 0.15 LZR 0.7 1 0.5 TFE 0.1 0.18 TFE 0.3 0.5 1 a. Find the optimal solution using an Excel spreadsheet model and Solver. Attach your spreadsheet model with the optimal solution. LLR: % LZR: % TFE: % Portfolio standard deviation:

7. Herbert Investments wants to prepare a portfolio comprising three stocks. They would like to earn at least a 9% return at lowest possible risk. MEAN RETURN STDEV OF RETURN (0) CORRELATIONS (R) LLR LZR TFE LLR 0.07 0.05 LLR 1 0.7 0.3 LZR 0.09 0.15 LZR 0.7 1 0.5 TFE 0.1 0.18 TFE 0.3 0.5 1 a. Find the optimal solution using an Excel spreadsheet model and Solver. Attach your spreadsheet model with the optimal solution. LLR: % LZR: % TFE: % Portfolio standard deviation:

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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7. Herbert Investments wants to prepare a portfolio comprising three stocks. They would like to earn at least a 9% return at lowest possible risk. MEAN RETURN STDEV OF RETURN (0) CORRELATIONS (R) LLR LZR TFE LLR 0.07 0.05 LLR 1 0.7 0.3 LZR 0.09 0.15 LZR 0.7 1 0.5 TFE 0.1 0.18 TFE 0.3 0.5 1 a. Find the optimal solution using an Excel spreadsheet model and Solver. Attach your spreadsheet model with the optimal solution. LLR: % LZR: % TFE: % Portfolio standard deviation:
Transcribed Image Text:7. Herbert Investments wants to prepare a portfolio comprising three stocks. They would like to earn at least a 9% return at lowest possible risk. MEAN RETURN STDEV OF RETURN (0) CORRELATIONS (R) LLR LZR TFE LLR 0.07 0.05 LLR 1 0.7 0.3 LZR 0.09 0.15 LZR 0.7 1 0.5 TFE 0.1 0.18 TFE 0.3 0.5 1 a. Find the optimal solution using an Excel spreadsheet model and Solver. Attach your spreadsheet model with the optimal solution. LLR: % LZR: % TFE: % Portfolio standard deviation:
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