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You are a portfolio manager serving U.S. clients. You wish to construct for the next year an optimal risky portfolio composed of equity indices from
You are a portfolio manager serving U.S. clients. You wish to construct for the next year an optimal risky portfolio composed of equity indices from three developed markets (United States, Japan, Germany) and three emerging markets (China, South Korea, Thailand). Use the solver function of Excel to create the minimum variance portfolio and the efficient frontier.
1. Find the optimal risky portfolio formed from the six country index portfolios.
2. Find the minimum variance portfolio.
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