2 Suppose that a farmer in North Florida is considering planting either cotton, corn, peanuts or soybeans. The historical revenue per acre is presented in Table 1 along with the Personnel Consumption Expendi- ture index (a measure of inflation). Table 2 presents the real (inflation adjusted) revenues for the same time period. [In this case we trans- form the revenue in each year to its 2022 equivalence]. Given that the variable cost for cotton is $ 557.22/acre, the variable cost for corn is $ 737.39/acre, the variable cost for peanuts is $ 807.86 and the variable cost for soybeans is $389.91, compute the risk (i.e., variance) mini- mizing portfolio of crops that will produce an income of $ 27,500 given that the farmer has 240 acres of land. 2022 Year Table 1: Nominal Revenue Per Acre with PCE Deflator Cotton Corn Peanuts Soybean PCE Deflator 719.06 1,205.40 1,037.40 433.81 122.861 2021 609.92 1,059.52 858.40 487.33 115.621 2020 384.10 782.46 693.60 418.46 111.145 2019 527.16 706.79 763.80 209.90 109.933 2018 377.19 701.79 817.65 299.70 108.317 2017 553.31 719.67 790.05 300.90 106.054 2016 625.12 569.85 733.40 315.00 104.148 2015 648.71 535.80 676.80 304.00 103.116 2014 585.63 492.75 860.00 382.70 102.887 2013 542.02 599.83 955.90 483.80 101.354 Table 2: Real Revenue for each crop in 2022 Dollars Year Cotton Corn Peanuts Soybeans 2022 719.06 1,205.40 1,037.40 433.81 2021 648 11 1,125.87 912.15 517.85 2020 424.59 864.94 766.71 462.57 2019 589.15 789.91 853.62 234.58 2018 427.83 796.02 927.44 339.94 2017 641.00 833.72 915.25 348.59 2016 737.43 672.24 865.18 371.60 2015 772.92 638.40 806.40 362.21 2014 699.32 588.41 1,026.96 457.00 2013 657.03 727.11 1,158.74 586.46