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Financial Planner Minnie Margin Has a Substantial Number of Clients

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Essay

Financial planner Minnie Margin has a substantial number of clients who wish to own a mutual fund portfolio that matches, as a whole, the performance of the Russell 2000 index. Her task is to determine what proportion of the portfolio should be invested in each of the five mutual funds listed below so that the portfolio most closely mimics the performance of the Russell 2000 index. Formulate the appropriate nonlinear program.
Financial planner Minnie Margin has a substantial number of clients who wish to own a mutual fund portfolio that matches, as a whole, the performance of the Russell 2000 index. Her task is to determine what proportion of the portfolio should be invested in each of the five mutual funds listed below so that the portfolio most closely mimics the performance of the Russell 2000 index. Formulate the appropriate nonlinear program. ​   ​


Definitions:

Greater Trochanters

The large, prominent protrusions located at the junction of the femur (thigh bone) and the hip bone.

Femur

The femur, known as the most extended, weightiest, and most robust bone in the human body.

Articulates

To articulate means to form a joint or to connect in a manner that allows for movement between different bones or parts.

Calcaneus

The large bone forming the heel of the foot, playing a critical role in walking, running, and jumping by serving as an important lever arm.

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