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Show steps using solver An investment adviser is helping a couple plan a retirement portfolio. The adviser has recommended three stocks -Allied Electronics, Bank United
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An investment adviser is helping a couple plan a retirement portfolio. The adviser has recommended three stocks -Allied Electronics, Bank United and Consolidated Computers. Following are the annual return and variance for each stock and the covariance between stocks: Stock Allied Electronics Bank United Consolidated Computers Annual Return 0.14 0.1 0.12 Covariance 0.1 0.04 0.08 Stock Combination A,B AC B,C Covarince 0.4 0.7 0.3 The couple wants a total portolio return of at least 0.11. Determine the proportion of each stock to include in the portfolio to minimize the overall riskStep by Step Solution
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