1. The firm would like to achieve a target return of 0.19%. What mix of investments would achieve this?

2. To obtain better diversification, the CFO would like to restrict the percentage of investments in each fund as follows:

Bond: between 10% and 50%

S&P 500: between 30% and 50%

Small cap: no more than 20%

Mid cap: no more than 20%

Large cap: no more than 25%

Emerging market: no more than 10%

Commodity: no more than 20%

How would the optimal portfolio and objective change? Summarize your findings in a short memo to Mr. Ferguson. Mid Large Emerging Cap Market S&P Small iCommodityi Bond 500 Cap ap 0.002% Bond -0.001% iS&P 500 0.020% iSmall cap 0.027%i0.047% -0.001% Mid cap -0.001% 0.024%i0.039%i0.033% Large cap -0.001% 0.019%10.027%i0.023% 0.027% Emerging 0.032%i0.050% 0.043%i0.041% 0.085% 0.000% market Commodity 0.000% 0.000%i0.005%10.005%i0.009%10.015% 0.054% Average weekly H0.044% Ho.118%H0.256%l0.226% |0.242%10.447% 0.053% return An important aspect of business analytics is good communication. Summarize your findings and write up your answers to this case formally in a well-written report as if you were a consultant to Ms. Burke. How would the optimal portfolio and objective change? Summarize your findings in a short memo to Mr. Ferguson. Mid Large Emerging Cap Market S&P Small iCommodityi Bond 500 Cap ap 0.002% Bond -0.001% iS&P 500 0.020% iSmall cap 0.027%i0.047% -0.001% Mid cap -0.001% 0.024%i0.039%i0.033% Large cap -0.001% 0.019%10.027%i0.023% 0.027% Emerging 0.032%i0.050% 0.043%i0.041% 0.085% 0.000% market Commodity 0.000% 0.000%i0.005%10.005%i0.009%10.015% 0.054% Average weekly H0.044% Ho.118%H0.256%l0.226% |0.242%10.447% 0.053% return An important aspect of business analytics is good communication. Summarize your findings and write up your answers to this case formally in a well-written report as if you were a consultant to Ms. Burke