r $16$ Assignment amount. Consider the Hauck Financial Service data.

Click on the datafile logo to reference the data.

DATA

$\backslash$table$[[,$Annual Return $(\%)],[$Mutual Fund,Year $1,$Year $2,$Year $3,$Year $4,$Year $5],[$Foreign Stock,$10\mathrm{.}06,13\mathrm{.}12,13\mathrm{.}47,45\mathrm{.}42,-21\mathrm{.}93],[$Intermediate$-$Term Bond,$17\mathrm{.}64,3\mathrm{.}25,7\mathrm{.}51,-1\mathrm{.}33,7\mathrm{.}36],[$Large$-$Cap Growth,$32\mathrm{.}41,18\mathrm{.}71,33\mathrm{.}28,41\mathrm{.}46,-23\mathrm{.}26],[$Large$-$Cap Value,$32\mathrm{.}36,20\mathrm{.}61,12\mathrm{.}93,7\mathrm{.}06,-5\mathrm{.}37],[$Small$-$Cap Growth,$33\mathrm{.}44,19\mathrm{.}40,3\mathrm{.}85,58\mathrm{.}68,-9\mathrm{.}02],[$Small$-$Cap Value,$24\mathrm{.}56,25\mathrm{.}32,-6\mathrm{.}70,5\mathrm{.}43,17\mathrm{.}31]]$

$($a$)$ Construct this version of the Markowitz model for a maximum variance of $36.$

Let:

FS $=$ proportion of portfolio invested in the foreign stock mutual fund

$IB=$ proportion of portfolio invested in the intermediate$-$term bond fund

$LG=$ proportion of portfolio invested in the large$-$cap growth fund

$LV=$ proportion of portfolio invested in the large$-$cap value fund

$SG=$ proportion of portfolio invested in the small$-$cap growth fund

$SV=$ proportion of portfolio invested in the small$-$cap value fund

$\frac{?}{\text{b}\text{a}\text{r}}(R)=$ the expected return of the portfolio

$R_S=$ the return of the portfolio in year $s$ constant is $"1"$ it must be entered in the box. If your answer is zero enter $"0".$

$\backslash$table$[[\backslash$table$[[$Max $\frac{?}{\text{b}\text{a}\text{r}}(R)$