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Exhibit 4.2
The following questions correspond to the problem below and associated Analytic Solver Platform sensitivity report.
Robert Hope received a welcome surprise in this management science class; the instructor has decided to let each person define the percentage contribution to their grade for each of the graded instruments used in the class. These instruments were: homework, an individual project, a mid-term exam, and a final exam. Robert's grades on these instruments were 75, 94, 85, and 92, respectively. However, the instructor complicated Robert's task somewhat by adding the following stipulations: The following LP model allows Robert to maximize his numerical grade.
-Refer to Exhibit 4.2. Constraint cell F9 corresponds to the constraint, W1 + W2 + W3 + W4 = 1, and has a shadow price of 75. Armed with this information, what can Robert request of his instructor regarding this constraint?
Howey Test
A test created by the Supreme Court to determine whether a transaction qualifies as an "investment contract" and is therefore subject to securities laws.
Security Exists
Indicates that a financial security, such as a stock or bond, is issued and available for trading or investment.
Inside Information
Confidential or non-public information about a company or its operations that could be used for trading its public securities and is considered illegal when used for insider trading.
Material Information
Important facts or data that could influence an individual's decision in a transaction, often used in financial and legal contexts.
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