Use the Table Below to Answer the Following Question(s)

question 45

Multiple Choice

Use the table below to answer the following question(s) .
Jonathan Reese is considering three stocks in which to invest with a fixed budget.The table below provides information on Jonathan's expected returns for each stock.The table also provides information, collected from market researchers, on the variance-covariance matrix of the individual stocks.He expects a total return of at least 10%.

Develop a quadratic optimization model to find the optimal allocation of the budget to each stock, and variance calculations for squared terms and cross-products based on the variance-covariance matrix.
-According to the model, what percentage of the budget should be allocated to Stock 2?

• A)90%
• B)25%
• C)50%
• D)75%

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Definitions:

Deviance

Behaviors, actions, or conditions that violate social norms or values, ranging from minor breaches to major violations, often subject to social judgment.

Low-Consensus Deviance

This refers to actions or behaviors that some people or groups in society may consider deviant, but there is significant disagreement or lack of consensus about whether these actions are truly deviant.

U.S. Society

The societal structure and cultural norms prevalent within the United States that are influenced by the country's history, values, and institutions.

Lower-Consensus Deviance

Acts or behaviors that are not widely agreed upon as deviant by society, often resulting in varied reactions and sanctions.