You have another client that is invested in three stocks: Stock X, Stock Y, Stock Z. She currently has invested 20.00% invested in Stock X and 60.00% invested in Stock Z, but she would like her target expected return to be 10.00%. Use Excel's Goal Seek (or Solver) to calculate how much she needs to shift from Stock Z into Stock X to hit her target expected return (the allocation to Stock Y will stay the same). Note: You can work this out by hand, but using Excel is quicker. 11 points State Stock X Stock Y Stock Z Probability 0.15 Boom 50% 40% 15% Good 0.35 20% 12% 12% Poor 0.30 -1% -3% 1% Bust 0.20 -15% -9% -9% 11.20% 7.50% 4.95% E(R) on the stock Currrent portfolio weights 0.20 0.20 0.60 Current portfolio return 6.71% Target portfolio return 10.00% HINT: In the yellow area below, write the current portfolio weights and then write the formula to calculate the portfolio return by referencing the weights in the yellow section. If done correctly, you should get the same expected return as listed above. Next, re-write the portfolio wieght on Stock Z as one minus the portfolio weights on X and Y (your answer should not change if done correctly). Re-writing the portfolio weight this way will guarantee that Excel returns portfolio weights that add to one. In addition, as the weight on X changes, so will the weight on Z but not the weight on Y. When you use Goal Seek (or Solver), cell E31 will be the only cell that Goal Seek should change. New Portfolio Return New portfolio weights