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PORT (15) In class, and in homework we constructed the efficient frontiers. You now get a chance to do it again. (Yay!) This tab contains

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PORT (15) In class, and in homework we constructed the efficient frontiers. You now get a chance to do it again. (Yay!) This tab contains adjusted closing prices for 11 (possibly real) companies. Using matrix algebra, calculate annual returns, then construct (and graph) the efficient frontier from 0% to 60% using these stocks. What are the weights in an efficient portfolio (allowing for short selling) with a target return of 20%? BOND James [10] Night Gallery has asked your help in determining how to allocate a $100,000 investment across 8 types of bonds. The goal is to maximize return. The bond parameters are as follows: Risk Tax Free Yes No Yes Bond Bond A Bond B Bond C Bond D Bond E Bond F Bond G Bond H Rate Term 2.0% Short-Term 3.0% Short-Term 5.0% Short-Term 6.5% Short-Term 6.0% Long Term 7.5% Long Term 7.0% Long Term 8.0% Long Term No Low Low High High Low Low High High Yes No Yes No Each bond costs $1,000 and you cannot buy fractional bonds. You must invest the full $100,000; you must purchase at least 5 ($5,000) of each bond type; at least 40% of the investment must be in short- term bonds; no more than 50% of the investment can be in high-risk bonds; at least 30% of the investment must be in tax-free bonds. Determine how many of each type of bond you should purchase. PLAYAS [10] Your uncle has long dreamed of driving an open top convertible on the beaches of Valdivia- Chile. He has figured out how long (in minutes) it would take him to ride his AUDI R8 between various paradisical beaches. Since he LOVES to drive, he wants to take the longest route possible. He will start and end in Curinanco visiting each beach only once. What route should he take

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