=10-36 Assume that one is given the following means, standard deviations, and correlations for the annual return

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=10-36 Assume that one is given the following means, standard deviations, and correlations for the annual return on three stocks.

STOCK 1 STOCK 2 STOCK 3 Mean return 0.15 0.18 0.23 S. D of return 0.15 0.14 0.18 CORRELATION MATRIX STOCK 1 STOCK 2 STOCK 3 Stock 1 1 0.52 0.35 Stock 2 0.52 1 0.49 Stock 3 0.35 0.49 1 The correlation between stocks 1 and 2 is 0.52, between stocks 1 and 3 is 0.35, and between stocks 2 and 3 is 0.49. You have Rs 12,000 to invest and can invest no more than 55% of your money in any single stock. How can one calculate the minimum variance portfolio that yields an expected annual return of at least 0.12?

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