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

question 43

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 is the expected total return on all stocks?

• A)18%
• B)10%
• C)11%
• D)12%

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Shrinkage

In retail, the loss of inventory due to factors like theft, damage, or error.

Shoplifting

The act of stealing goods from a store or retail establishment.

Unleashing

Releasing or setting free from restrictions, control, or limitations.

Criminal Talents

Specialized skills or abilities that enhance the effectiveness of engaging in unlawful or criminal activities.