Input area:
10-year annual Standard deviation
Bledsoe Large Company Stock Fund 12.15% 24.43%
Output area:
Weight of stock fund Portfolio E(R)
Portfolio standard
deviation
0% 6.93% 9.9600%
10% 7.45% 9.6380%
20% 7.97% 9.9520%
Dominant portfolio:
Weight of stock fund 20.13%
Weight of bond fund 79.87%
Minumum variance portfolio:
Weight of large cap stock fund 10.06%
Weight of bond fund 89.94%
Standard deviation 9.64%
Chapter 11
A Job at East Coast Yachts, Part 2
Bledsoe Bond Fund 6.93% 9.96%
0.00%
4.00%
8.00%
12.00%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%
Portfolio Standard Deviation
Microsoft Excel 15.0 Answer Report
Worksheet: [CF 12th edition Case Solutions.xlsx]Chapter 11
Report Created: 9/11/2018 3:35:14 PM
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: GRG Nonlinear
Solution Time: 0.062 Seconds.
Iterations: 3 Subproblems: 0
Solver Options
Max Time 100 sec, Iterations 100, Precision 0.000001
Convergence 0.0001, Population Size 100, Random Seed 0, Derivatives Forward, Require Bounds