Investment Manager Max Gaines Wishes to Develop a Mutual Fund

question 22

Essay

Investment manager Max Gaines wishes to develop a mutual fund portfolio based on the Markowitz portfolio model. He needs to determine the proportion of the portfolio to invest in each of the five mutual funds listed below so that the variance of the portfolio is minimized subject to the constraint that the expected return of the portfolio be at least 4%. Formulate the appropriate nonlinear program.
​
​

Understand the key elements and importance of short-term financial planning in business operations.

Identify and describe various costs associated with maintaining inventory, including carrying and shortage costs.

Describe the operating cycle, cash cycle, and how they impact business operations.

Explain the concepts of cash flow, cash budget, and their significance in financial management.

---

Definitions:

Feminist Ethics

An approach to ethics that prioritizes the experiences, interests, and welfare of women, and seeks to address and rectify the inequalities, biases, and power imbalances that disadvantages women.

Unified

Combined into a single entity or made consistent and coherent; often refers to processes, systems, or groups that operate together seamlessly.

Dogmatic

Pertaining to or characteristic of dogma, often implying an authoritative and unyielding adherence to beliefs regardless of evidence.

Act Utilitarians

Philosophers or ethicists who follow the principle of act utilitarianism, focusing on the consequences of individual actions and choosing those that maximize happiness or reduce suffering for the greatest number.