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Suppose that there are four stocks, LOON, UFO, SOP, and GLD, traded on the stock market. You want to find the market portfolio using Excel

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Suppose that there are four stocks, LOON, UFO, SOP, and GLD, traded on the stock market. You want to find the market portfolio using Excel Solver. Note: Cells B2 to B6 represent the weights of the four stocks. Cell B6 calculates the total weight of the four stocks in the portfolio (=SUM(B2:B6)). Cells B7, B8, and B9 calculate the expected return, standard deviation, and Sharpe Ratio of the portfolio, respectively. 1 1 A Security LOON UFO 2 3 B Market Portfolio 22.21 11.57% 18.11% 48.10% 4 4 5 6 SOP GLD Sum Weights Expected Retum Standard Deviation Sharpe Ratio 7 7 100% 9.28% 6.53% 0.3615 8. 9 What is the objective you should set in the Solver window to find the market portfolio? To maximize the expected return of the portfolio (Max $B$7) To maximize the Sharpe Ratio of the portfolio (Max $B$9) To maximize the standard deviation of the portfolio (Max $B$8) To minimize the standard deviation of the portfolio (Min $B$8)

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