It is almost the end of the semester and you have two exams left. You need to decide how to allocate your time. Except for eating, sleeping, exercising and maintaining some human contact, you have 12 hours each day to study for your exams. You have figured out that your GPA from your two courses, Corporate Finance and Fixed Income takes the form gap = 2/ 3 (c + 2f)

Where C is the number of hours per day spent on Corporate Finance, and F is the hours per day spent on Fixed Income.

(a) Use the Lagrange method to find the optimal number of hours per day spend on each course.

(b) If you follow this strategy what will your GPA be? Please keep two decimal places for your final answer.

Before attempting this question, you want to go through the file named "Portfolio Optimization Exercise".