Use the Table Below to Answer the Following Questions) The Company Recommends That No More Than $300,000 Be Invested

question 38

Multiple Choice

Use the table below to answer the following questions) .
Qualis Investments is a private limited business that manages personal financial portfolios. The company manages six mutual funds and has a client that has acquired $750,000 from an inheritance. Characteristics of the funds are given in the table below. $$\begin{array} { | c | l | c | c | } \hline & \text { Qualis Mutual Fund Data } & & \\\hline & & \begin{array} { c } \text { Expected Annual } \\\text { Return }\end{array} &\text { Risk Measure } \\\hline 1 & \text { Qualis Low-priced Stock Fund } & 7.23 \% & 11.87 \\\hline 2 & \text { Qualis Multinational Fund } & 8.42 \% & 12.62 \\\hline 3 & \text { Qualis Mid-cap Stock Fund } & 6.66 \% & 13.72 \\\hline 4 & \text { Qualis Mortgage Fund } & 2.72 \% & 3.37 \\\hline 5 & \text { Qualis Income Equity Fund } & 8.89 \% & 8.4 \\\hline 6 & \text { Qualis Balanced Fund } & 3.50 \% & 6.91 \\\hline \end{array}$$ The company recommends that no more than $300,000 be invested in any individual fund, and that at least $80,000 be invested in each of the mid-cap stock and mortgage fund. The total amount invested in the low-priced and multinational funds are at least 35% of the total investment. The client would like an average return of at least 6%. Assume that X1- X6 represent the dollar amounts invested in funds 1 through 6, respectively.
-If the unit profit on both Graystone and Lava surfboards is increased by $10, what is the shadow price for the finishing hours used?

• A) -4.35
• B) 8.33
• C) 20.65
• D) 32.46

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Definitions:

Conditioned Response

A learned reaction to a specific stimulus that results from repeated exposure to that stimulus paired with a particular response.

Classical Conditioning

A learning paradigm wherein two stimuli are continuously paired together; initially, the response comes from the second stimulus, but later, the first stimulus can independently provoke the response.

Unconditioned Stimulus (UCS)

In classical conditioning, an automatically eliciting stimulus that leads to an unconditioned response without prior conditioning.

Conditioned Stimulus (CS)

In classical conditioning, a previously neutral stimulus that, after becoming associated with an unconditioned stimulus, evokes a conditioned response.