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Sta The Hal Chase Investment Planning Agency is in business to help investors optimize their return from investment. Hal deals with three investment mediums: a

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The Hal Chase Investment Planning Agency is in business to help investors optimize their return from investment. Hal deals with three investment mediums: a stock fund, a bond fund, and his own Sports and Casino Investment Plan (SCIP). The stock fund is a mutual fund investing in openly traded stocks. The bond fund focuses on the bond market, which has a more stable, but lower, expected return. SCIP is a high-risk scheme, often resulting in heavy losses but occasionally coming through with spectacular gains. Average returns, their variances, and covariances are given in the accompanying table. Develop and solve a portfolio optimization model for this situation for a target return of 7%. 0 Click the icon to view the table. Complete the table of optimal allocations. m _-E- _-E- _-E- (Round to two decimal places as needed.) Table of Returns, Variances, and Covariances Stock Bond SCIP % Average return 0.148 0.06 0.152 Variance 0.014697 0.000155 0.160791 Covariance with stock 0.000468 - 0.002222 Covariance with bond - 0.000227

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