3) You have $1000 to invest in three stocks. S, annual return on $1 invested in stock i (a random variable) Given: E[S,] = 0.14 E[S,] 0.11 E[S,] = 0.10 = VAR[S,]= VAR[S,] 0.18 = 0.20 = 0.08 cov [s,,s,] 0.05 cov[s,s,] 0.02 cov[s,s,] 0.30 = i = Using Solver in Excel, find a portfolio (how much to invest in each stock) that attains an expected annual retur of 12% and minimizes the variance of the return. (Hint: See Variance of a Sum of Random Variables in Stochastic Programming.) Include in your homework submission, screen shots of the model data in the home spreadsheet, the Solver dialog box and the Solver output 3) You have $1000 to invest in three stocks. S, annual return on $1 invested in stock i (a random variable) Given: E[S,] = 0.14 E[S,] 0.11 E[S,] = 0.10 = VAR[S,]= VAR[S,] 0.18 = 0.20 = 0.08 cov [s,,s,] 0.05 cov[s,s,] 0.02 cov[s,s,] 0.30 = i = Using Solver in Excel, find a portfolio (how much to invest in each stock) that attains an expected annual retur of 12% and minimizes the variance of the return. (Hint: See Variance of a Sum of Random Variables in Stochastic Programming.) Include in your homework submission, screen shots of the model data in the home spreadsheet, the Solver dialog box and the Solver output