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Step One: Select a company and obtain its income statements and balance sheets for at least 10 accounting periods (quarterly or annual data). Step

Step One: Select a company and obtain its income statements and balance sheets for at least 10 accounting periods (quarterly or annual data). Step Two: For each accounting period, calculate the totals for current assets and current liabilities. Step Three: Divide the totals calculated in step two by that period's net sales, expressing the two categories on a "per unit of sales basis." Step Four: Use the provided Excel template and formulas to calculate the mean, variance, covariance, etc. for the data you calculated in Step Three. Step Five: Download Solver from Excel and use the Solver template to input the statistical data. you calculated in Step Four. Step Six: Choose the initial weights you wish to use for your portfolio optimization. Note the weight for the second portfolio component must be expressed be the Excel formula: Step Seven: Use Solver to calculate the optimal combination of the current assets and current liabilities as measured by the optimal variance. Step Eight: Provide a written analysis of your findings and recommend if the firm should strive to maintain the optimal combination or should they maintain some other combination. Provide an explanation for your suggestion.

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