Refer to Problem 15. Use the model developed there to construct an efficient frontier by varying the maximum allowable variance from 20 to 60 in increments of = and solving for the maximum return for each. Plot the efficient frontier and compare it to Figure 10.12.
In Problem 15

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Annual Return (%) Year 3 Mutual Fund Year1 10.06 17.64 32.41 32.36 33.44 24.56 Year 2 13.12 3.25 18.71 20.61 19.40 25.32 Year 4 Year 5 Foreign Stock Intermediate-Term Bond Large-Cap Growth Large-Cap Value Small-Cap Growth Small-Cap Value 13.47 45.42 2193 7.36 23.26 5.37 -9.02 17.31 1.51 146 531 7.06 543 12.93 3.85 58.68 -6.70