Exhibit 7.3 The Following Questions Are Based on the Problem Below

question 50

Multiple Choice

Exhibit 7.3
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 minimax formulation of the problem has been solved in Excel.

-Refer to Exhibit 7.3. What formula goes in cell E11?

• A)=D11*(C11-B11)/C11
• B)=(C11-B11)/C11
• C)=D11*C11
• D)=D11*(C11- B11)

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Definitions:

Multinational Corporations

Companies that operate in multiple countries beyond their home country, managing production or delivering services in various nations.

Duplication of Tasks

Duplication of tasks refers to the scenario where the same work is being performed by multiple individuals or groups, often leading to inefficiency and waste of resources.

Line Structures

The most straightforward organizational structure, comprising direct lines of authority from the top manager to subordinate employees.