An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin

Exercise 5

In the latter part of Section 5.3 we developed a moderate risk portfolio model for Hauck Investment Services. Modify the model given so that it can be used to construct a portfolio for more aggressive investors. In particular, do the following:
a. Develop a portfolio model for investors who are willing to risk a portfolio with a return as low as 0%.
b. What is the recommended allocation for this type of investor?
c. How would you modify your recommendation in part (b) for an investor who also wants to have at least 10% of his or her portfolio invested in the foreign stock mutual fund? How does requiring at least 10% of the portfolio be invested in the foreign stock fund affect the expected return?