1. Susan Jones would like her investment portfolio to be selected from a combination of three stocks Alpha, Beta, and Gamma. Let variables A, B, and G denote the percentages of the portfolio devoted to Alpha, Beta, and Gamma, respectively. Susans objective is to minimize the variance of the portfolios return, given by the following function:

The expected returns for Alpha, Beta, and Gamma are 15%, 11%, and 9%, respectively. Susan wants the expected return for the total portfolio to be at least 10%. No individual stock can constitute more than 70% of the portfolio. Formulate this portfolio selection problem and solve using Excel

PLEASE USE TEMPLATE ABOVE. THANK YOU.

A B G Solution value A B G A B G A B A*G BG Variable terms Objective coeff Constraints: Total invest Min return Max Alpha Max Beta Max Gamma LHS Sign RHS Use 0 as the start point