Solver/Portfolio Optimization: How to use Solver to get the highest sharpe ratio and how to answer the questions under the three scenarios?

Question

This is the data I have: 

Does anyone know how I can use Solver on Excel to find the highest Sharpe ratio?

In addition, I'm supposed to provide separate answers under each of the following scenarios.

A)  All the portfolio weights must be non-negative. 

B) Non-negative weights + No investment in the mom return.

C) Non-negative weights + No investment in Gold. 

 I believe I need to start by creating three columns for the portfolio returns. But I'm not entirely sure how to do this. If anyone has any idea on how I can do that and answer the questions under the three scenarios, or the direction I should take to get this done. It would be so helpful and appreciated.

Answer 1

HI Joe

Right-click on Farah's screen shot in his question and choose Copy Picture.

Then, in Excel, go to the Insert tab and click the Data From Picture button to get the example data.