You got a position as a junior portfolio manager with Hillsom Mutual Fund. Hillsom Fund is a small investment company that pools funds from a group of 50 households to invest in an aggressive portfolio. During the last 5 years, its compound realized return was 15%. This impressive performance is mainly due to Hillsom's investment strategy that uses both fundamental and technician approaches. One of the objectives of Hillsom for the next three years is to become one of the main local mutual funds players in Ontario. In order to attain this objective, Hillsom has to set up family funds to appeal to other investors with different risk-return preferences. To achieve this goal, Hillsom can hire a senior mutual funds manager with a CFA designation to supervise the construction of the different funds that will compose the Hillsom family funds. A second alternative is to assign the project to upwardly mobile junior managers. Each of these juniors will be responsible for the construction of a fund. This second alternative appeals to the board of directors, which has decided to hire 8 young professionals for the project. Congratulations! You are among those juniors that the CEO is pleased to refer to as the "Young Lions". Now that you got the job, your capacity to keep it will be put to a test. After spending some time on the investment game at www.stocktrak.com and having a half-day meeting with Dr. Quantum, the Hillsom investment strategist, your assignment is to construct a diversified portfolio based on the modern portfolio theory. The objective of your funds is to be defined by you and the total amount available for it is $2,000,000. The expected time frame is 3 years.