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Open the file Stocks.xlsx Four stocks are available for creating a portfolio: Microsoft, AT1, GM and GE We have data on the mean st ndard

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Open the file Stocks.xlsx Four stocks are available for creating a portfolio: Microsoft, AT1, GM and GE We have data on the mean st ndard de iation . nd the covariance of ret im.. f we chose to invest certain 1 ercenturies of our as et. in each of the four stocks we c n determine the mean and _andard deviation of the resulting portfolio, a. in the a- companying - pread.heet. One way to formal te the problem of deter.inin_ the optional portfolio for an individual i. to comome the . lean and st noaru de iation of the return muto a ingle measure of the overall utility of the portfolio. This : a be done using penalty factor (p) for the tandard deviation so that the utili, is given by the mean return re.. a penalty for the stand. rd deviation

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