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You are a investment advisor and are asked to construct an optimal portfolio of twelve stocks for your client. After having considered the requirements of

You are a investment advisor and are asked to construct an optimal portfolio of twelve stocks for your client. After having considered the requirements of the client, you decided to apply the following constraints: A) full investment constraint B) min-max constraints C) box constraint d) diversification constraint with the objective of minimizing the risk measured by standard deviation 1. Explain the objective and each of the above constraints 2. Explain the steps involved in the constraints of optimal portfolio.

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