Investment management

  Suppose that you are an investment manager at a large asset management company. One of your clients (John McLean) has recently sent you an email regarding his portfolio. In John McLean’s email to you, the questions are as follows (in the below box). - Use Markowitz Portfolio Optimization Model to manage my portfolio. Can you briefly explain this model in simple terms? - According to the Markowitz Portfolio Optimization Model, what should be done? (Should some very risky stocks be bought or sold? Should some very risky bonds be bought or sold? Should some very risky commodities be bought or sold? Is there another way?)