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Question: Consider the stock return scenarios for Apple Computer (APPL), Advanced Micro Devices (AMD), and Oracle Corporation (ORCL) shown in the following table:

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a. Develop the Markowitz portfolio model for these data with a required expected return of 25 percent. Assume that the eight scenarios are equally likely to occur.

b. Solve the model developed in part a.

c. Vary the required return in one percent increments from 25 percent to 30 percent, and plot the efficient frontier.

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