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Exhibit 7.2 The Following Questions Are Based on the Problem Below

question 9

Multiple Choice

Exhibit 7.2
The following questions are based on the problem below.
An investor has $150,000 to invest in investments A and B. Investment A requires a $10,000 minimum investment, pays a return of 12% and has a risk factor of .50. Investment B requires a $15,000 minimum investment, pays a return of 10% and has a risk factor of .20. The investor wants to maximize the return while minimizing the risk of the portfolio. The following multi-objective linear programming (MOLP) has been solved in Excel.
-Refer to Exhibit 7.2. What formula goes in cell B11?

Understand the basic financial ratios and their applications.

Conduct horizontal and vertical financial statement analysis.

Analyze a company's liquidity, solvency, and profitability.

Calculate and interpret common financial ratios such as current ratio, quick ratio, inventory turnover, accounts receivable turnover, and times interest earned.

Definitions:

Journal Entry

A record in accounting that notes the details of a financial transaction in a company’s financial systems.

Raw Materials

Basic materials that are used in the production process to manufacture goods, often transformed or converted into the finished product.

Journal Entry

A record in the books of account that represents a transaction and its effect on the accounts, typically including a debit and credit.

Period Costs

Costs not directly linked to manufacturing and are charged as expenses when they occur, including sales, general, and administrative costs.