Michigan Investment can invest in four stocks.

Michigan Investment is looking for a minimum-variance portfolio that would yield an expected return of at least 13%.

Use Solver to determine the optimal fractions of total investment to invest in each stock.

Complete the table below

  

Inputs Mean return Standard deviation of return Covariance Stock 1 Stock 2 Stock 3 Stock 4 Decision Variables Fractions to invest Objective = Minimize Output Portfolio Variance Stock 1 15.00% 19.00% Stock 1 3.61% 1.33% 1.52% -1.22% Stock 2 13.00% 14.00% Stock 2 1.33% 1.96% 1.96% -0.67% Stock 3 20.00% 20.00% Stock 3 1.52% 1.96% 4.00% -0.80% Stock 4 9.00% 8.00% Stock 4 -1.22% -0.67% -0.80% 0.64% Constraints Minimum expected return Fractions should sum up to 100%