Maximize and Minimize $p = 3 x - y$ Subject To $$\begin{array} { l } x + y \geq 3 \\x - y \leq 3 \\x - y \geq - 3 \\x \leq 12 , y \leq 12\end{array}$$

question 123

Multiple Choice

Maximize and minimize $p = 3 x - y$ subject to $$\begin{array} { l } x + y \geq 3 \\x - y \leq 3 \\x - y \geq - 3 \\x \leq 12 , y \leq 12\end{array}$$

• A)Max: \(p = 15\) , \(x = 9\) , \(y = 12\) , min: \(p = - 3\) , \(x = 0\) , \(y = 3\)
• B) Max: \(p = 27\) , \(x = 12\) , \(y = 9\) ,
• Min: \(p = 3\) , \(x = 0\) , \(y = 3\)
• C) Max: \(p = 27\) , \(x = 12\) , \(y = 9\) ,
• Min: \(p = - 3\) , \(x = 0\) , \(y = 3\)
• D) the feasible region is empty
• E) the objective function is unbounded

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Definitions:

Total Abnormal Return

The sum of the differences between the expected return on a security, based on a model like the CAPM, and the actual return over a specific period.

Bogey Portfolio

A benchmark portfolio against which the performance of an investment portfolio can be measured.

Bonds

Financial instruments representing loans made by an investor to a borrower, typically corporate or governmental, which are expected to be paid back with interest.

Sharpe Measure

An indicator of the performance of an investment compared to a risk-free asset, adjusted for its risk, calculated as the difference in returns divided by the standard deviation of the investment.