Hi, I need help to figure out my assignment. I do not understand what is a risk-minimising approach and how to calculate it in the excel with the re-balancing frequency.Can you help me explain this and if possible, examples or samples would help me a lot. Thank you.

Specic Requirements You will need to consider four optimisation approaches: 1. An equally weighted approach 2. A riskminimising approach 3. A meanvariance approach 4. Your choice of: Stutzer's approach, maximum diversication, risk parity or another approach of your choice.2 Please note: papers relevant to the assignment are posted on iLearn. In Week 8 we will cover Stutzer's approach, maximum diversication and risk parity. In each case, you will need to make explicit assumptions about: 1. Rebalancing frequency Once you have the optimal weights for each approach you need to test the strategy, e.g. starting with say $100/$10,000/a value of your choice, split across the industries based on these weights. Over each period the weights will change as the amount invested changes due to the periodic returns. Therefore, you need to consider how often to rebalance your portfolio back to the optimal weights given the tradeoff between transaction costs and effectively executing your strategy. Based on this test of your strategy you will develop a timeseries of portfolio returns which you can use to evaluate performance using some of the measures covered in class (see Week 6 slides). Note: the historical period(s) used for the optimisations do not necessarily have to be the same as the period that the strategy is tested over