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 11%.

Proportions:

Stock ____

Bond ____

SCIP ____

Please show excel formulas used to find the answer, thank you!

\begin{tabular}{|l|r|r|r|} & \multicolumn{1}{|c|}{ Stock } & \multicolumn{1}{c|}{ Bond } & \multicolumn{1}{c|}{ SCIP } \\ \hline Average return & 0.148 & 0.06 & 0.152 \\ \hline Variance & 0.014697 & 0.000155 & 0.160791 \\ \hline Covariance with stock & & 0.000468 & -0.00222 \\ \hline Covariance with bond & & & -0.00023 \\ \hline \end{tabular}