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Table 8-5 Ivana Myrocle Wishes to Invest Her Inheritance of $200,000 So

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Table 8-5
Ivana Myrocle wishes to invest her inheritance of $200,000 so that her return on investment is maximized, but she also wishes to keep her risk level relatively low. She has decided to invest her money in any of three possible ways: CDs, which pay a guaranteed 6 percent; stocks, which have an expected return of 13 percent; and a money market mutual fund, which is expected to return 8 percent. She has decided that any or all of the $200,000 may be invested, but any part (or all) of it may be put in any of the 3 alternatives. Thus, she may have some money invested in all three alternatives. In formulating this as a linear programming problem, define the variables as follows: Table 8-5 Ivana Myrocle wishes to invest her inheritance of $200,000 so that her return on investment is maximized, but she also wishes to keep her risk level relatively low. She has decided to invest her money in any of three possible ways: CDs, which pay a guaranteed 6 percent; stocks, which have an expected return of 13 percent; and a money market mutual fund, which is expected to return 8 percent. She has decided that any or all of the $200,000 may be invested, but any part (or all)  of it may be put in any of the 3 alternatives. Thus, she may have some money invested in all three alternatives. In formulating this as a linear programming problem, define the variables as follows:   -According to Table 8-5, which describes an investment problem, suppose that Ivana has assigned the following risk factors to each investment instrument CDs (C) : 1.2; stocks (S) : 4.8; money market mutual fund (M) : 3.2. If Ivana decides that she wants the risk factor for the whole investment to be less than 3.3, how should the necessary constraint be written? A)  1.2C + 4.8S + 3.2M ≤ 3.3 B)  C + S + M ≤ 3.3 C)  1.2C + 4.8S + 3.2M ≤ 3.3(C + S + M)  D)  (1.2C + 4.8S + 3.2M) /3 ≤ 3.3 E)  S = 0
-According to Table 8-5, which describes an investment problem, suppose that Ivana has assigned the following risk factors to each investment instrument CDs (C) : 1.2; stocks (S) : 4.8; money market mutual fund (M) : 3.2. If Ivana decides that she wants the risk factor for the whole investment to be less than 3.3, how should the necessary constraint be written?

Acknowledge the potential pitfalls in group decision-making, such as the planning fallacy and confirmation bias.
Understand the complexity and dynamics of group decision-making processes.
Identify and explain the various decision-making methods, including Vroom's model.
Recognize the ethical considerations and justice issues within group decision-making.

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