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Questions 6-8 are based on the following information Suppose you are constructing a market neutral portfolio In Excel and you want to use Solver for

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Questions 6-8 are based on the following information Suppose you are constructing a market neutral portfolio In Excel and you want to use Solver for the next step. In cell C13, you have set up function-D9-B9+D10-B10 in cell C14 you have set up function-09-10 In cel Cas you have set up function -D9'C9+D10*C10 E F H K Solver Parameters B Beta Alpha 0.915604 0.001362844 0.734828 -0.000120859 1.295616 9.1489E-OS 0.699966 0.001490541 5 Obje To MAR A 1 Stock 2 A 3 4 C 5 D 6 7 Combination 1 Stock 9 A 10 B OYO changing er Subto the Constit Beta Alpha Weight 0.91604 0.001362844 0.734828 -0.000120859 at Delete Constraints net 0 0 1 0 Load 0 positive DM United Native Oto CRG Nora Sele Son M 12 13 Portfolio bela 14 Total weight 15 Portfolio alpha 16 17 18 19 20 21 22 23 St Mathed SG Neto Santothenia Seled the perne for them and select the presso tutti Sole Chese 0.5 pts 1 Question 9 1 pts Suppose you are considering constructing a market neutral portfolio using two stocks. The fundamentals of the two stocks are listed in the table below alpha Ibeta Stock A -0.0017 1.4261 Stock B -0.0013 1.0587 Use market neutral and pair trading strategies, decide how to allocate your wealth on these two stocks to achieve a successful market neutral portfolio Show all your work

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