Challenge: Constrained Optimization

Evaluate yourself on the concepts learned in this chapter via a coding exercise.

Problem statement

Suppose you have $10000 to invest in the stock market and you want to diversify your portfolio among three different stocks: Stock 1 (STK1), Stock 2 (STK2), and Stock 3 (STK3). You have the following information on the expected return of these three stocks based on their five-year compound annual growth rate (CAGR):

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