Portfolio variance minimization process

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In order to find the Minimum Variance Portfolio (MVP), which constraints do you include in the Markowitz’s portfolio variance minimization process? Assume no short sale is allowed.

I) Expected Return = a specified return

II) The weight on each stock must be greater than or equal to zero

III) The sum of all weights must add to 100%

a. I only                       b. II and III only           c. I and III                   d. I, II, and III

4. Firm ZXY has $20 mil in Debt, $30 mil in Book Value, $90 mil in Total Asset and a market value of $65 mil. The earning for the year is $8 mil. Its return on capital is

a. 16.0%                      b. 9.4%                        c. 8.89%                      d. 5.71%

Reference no: EM131940077

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