The S&P/ASX20 Index comprises the 20 largest companies by market capitalisation. If you had $1 million to invest in any combination of the ASX20 and government bonds where the lowest possible allocation for any company is 0% and the highest is 100% (which means you have just one company in your portfolio), what combination would you select to maximise expected return over the period 30 April 2022 and 31 December 2022? (Weighting: 50% of assignment mark)

What are the constituents of the S&P/ASX20?

How have these companies performed historically and in what kind of environments?

Explain your expectation of the future environment and its impact on your portfolio and alternatives.

Is it clear why your portfolio allocation is expected to outperform alternatives?