Please do in Excel Problem 2: An investment client of your wealth management firm has targeted three candidate firms for a small sector portfolio and would like you to recommend an allocation strategy (i.e., investment weights for each firm). Assume that you will consider all possible combinations of two firms (equally weighted) as well as all three firms (also equally weighted) for the portfolio. (Hint: there are four possible portfolios.) Use the data below to develop a recommended allocation. Explain why your recommendation is optimal (Hint: correlation).

	Stock Returns
Fiscal Year	Atchison	Topeka	Santa Fe
2015	26%	12%	39%
2016	-22%	33%	-14%
2017	21%	15%	1%
2018	-5%	10%	23%
2019	33%	-23%	-9%
2020	8%	15%	22%
Average Return	10.2%	10.3%	10.3%
Volatility	20.8%	18.3%	20.8%