please answer all aspects of the question and use excel that is attached

4) Imagine that you have an investment universe consisting of 10 stocks. The stock's expected returns, along with the variance covariance matrix are given below. The risk-free rate is 2%. A A C D Expected Returns 3.SON 400 450W 5.00 SON 6.00 SON 7.00 7.50 OON 0.0020 0.0037 0.0021 0.0015 0.0012 0.0001 0.0020 0.0031 0.0015 0.0011 C 0.00371 0.0180 0.0284 0.0076 0.0111 0.0011 0.0122 001 0.004 0.0043 Variance Cove Mar D G 0.003 0.0015 0.0017 0.0007 0.0020 0.0031 0.0284 0.0076 0.0111 0.0011 0.0127 0.0175 0.022 0.00 0.0007 0.0031 0.0102 0.01) 0.0005 0.000 0.000 0.0010 0.0046 00079 0.0097 0.000 0.016 0.0016 0.0001 000 0.0011 0.0010 0.0016 0.0026 0.0020 0.0046 0.0102 0.0016 0.000 DOR 0.0122 0.0163 0.0133 0.0079 0.0049 0.0046 0.016) 0.019) 0.0038 0.0011 0.0007 0.0011 0.0045 0.000 0.0019 0.0010 0.0020 0.000 0.0022 0.0012 0.0015 0.001 00018 0018 0.000 00011 0.0041 0.000 0.0041 0.0011 0.0011 0.0043 0.0019 0.0014 0.000 0.0001 0.0022 0.0017 0.0013 00026 H a) Determine the optimal portfolio weights in the 10 stocks when the following constraints are enforced No short sales No more than 30% invested in a single stock At least 5% invested in each stock The sum of stocks' G though I must be less than 40% (these 4 stocks are all in the same industry) 0 What is the expected return, standard deviation, and Sharpe ratio of this portfolio? b) Determine the optimal portfolio weights in the 10 stocks when only the constraint against short sales in is force What is the expected return, standard deviation, and Sharpe ratio of this portfolio? c) How much better is the Sharpe ratio for the unconstrained portfolio? How much extra return does the unconstrained portfolio produce? How much lower is the standard deviation for the unconstrained portfolio? H U 1 JA SIE ES 4 NO BOND BO BO CE BO ODIN DONO SUM 119 Pem w CHE SON CHO Box CO BO DEX BO DEN DO 4.00 WO ANT 100 11 16 NIEZ 7 949 DO 000 6000 0.00 D. BOB FO DO 1 HE 03 se n 2 SA 13 BE Q Question Gion Quid Questions DRI 100% Ready henne 1902 4) Imagine that you have an investment universe consisting of 10 stocks. The stock's expected returns, along with the variance covariance matrix are given below. The risk-free rate is 2%. A A C D Expected Returns 3.SON 400 450W 5.00 SON 6.00 SON 7.00 7.50 OON 0.0020 0.0037 0.0021 0.0015 0.0012 0.0001 0.0020 0.0031 0.0015 0.0011 C 0.00371 0.0180 0.0284 0.0076 0.0111 0.0011 0.0122 001 0.004 0.0043 Variance Cove Mar D G 0.003 0.0015 0.0017 0.0007 0.0020 0.0031 0.0284 0.0076 0.0111 0.0011 0.0127 0.0175 0.022 0.00 0.0007 0.0031 0.0102 0.01) 0.0005 0.000 0.000 0.0010 0.0046 00079 0.0097 0.000 0.016 0.0016 0.0001 000 0.0011 0.0010 0.0016 0.0026 0.0020 0.0046 0.0102 0.0016 0.000 DOR 0.0122 0.0163 0.0133 0.0079 0.0049 0.0046 0.016) 0.019) 0.0038 0.0011 0.0007 0.0011 0.0045 0.000 0.0019 0.0010 0.0020 0.000 0.0022 0.0012 0.0015 0.001 00018 0018 0.000 00011 0.0041 0.000 0.0041 0.0011 0.0011 0.0043 0.0019 0.0014 0.000 0.0001 0.0022 0.0017 0.0013 00026 H a) Determine the optimal portfolio weights in the 10 stocks when the following constraints are enforced No short sales No more than 30% invested in a single stock At least 5% invested in each stock The sum of stocks' G though I must be less than 40% (these 4 stocks are all in the same industry) 0 What is the expected return, standard deviation, and Sharpe ratio of this portfolio? b) Determine the optimal portfolio weights in the 10 stocks when only the constraint against short sales in is force What is the expected return, standard deviation, and Sharpe ratio of this portfolio? c) How much better is the Sharpe ratio for the unconstrained portfolio? How much extra return does the unconstrained portfolio produce? How much lower is the standard deviation for the unconstrained portfolio? H U 1 JA SIE ES 4 NO BOND BO BO CE BO ODIN DONO SUM 119 Pem w CHE SON CHO Box CO BO DEX BO DEN DO 4.00 WO ANT 100 11 16 NIEZ 7 949 DO 000 6000 0.00 D. BOB FO DO 1 HE 03 se n 2 SA 13 BE Q Question Gion Quid Questions DRI 100% Ready henne 1902