Use This Information to Answer the Following Questions -Use the Sensitivity Report to Answer the Following Questions:
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question 3

Essay

Use this information to answer the following questions.
An investment company currently has $1 million available for investment in five different stocks.The company wants to maximize the interest earned over the next year.The five investment possibilities along with the expected interest earned are shown below.To manage risk,the investment firm wishes to have at least 35% of the investment in stocks A and B.Furthermore,no more than 15% of the investment may be in stock E.
$$\begin{array} { l c } \text { Investment } & \text { Expected Interest Earned (\%) } \\\text { Stock A } & 7 \\\text { Stock B } & 9 \\\text { Stock C } & 8 \\\text { Stock D } & 10 \\\text { Stock E } & 11\end{array}$$

-Use the Sensitivity Report to answer the following questions:
a.What would be the impact on the optimal allocation if the expected interest earned on stock A decreases to 6%?
b.What would be the impact on the optimal allocation if the expected interest earned on stock A increases to 10%?
c.What should the minimal expected interest earned for stock C be before it would be desirable to invest in this particular stock?
d.What would be the impact on the optimal allocation and the objective function value if the expected interest earned on stock B decreases by 1%?

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Definitions:

NAACP

The National Association for the Advancement of Colored People, a civil rights organization in the United States formed in 1909 to fight against racial discrimination.

Electoral Politics

The branch of politics that deals with elections and voting as a means for the electorate to select candidates to hold public office.

Racial Inequality

The unequal treatment or perceptions of individuals based on their race, leading to disparities in wealth, healthcare, education, and employment among other sectors.

Grandfather Clauses

Provisions that allowed individuals to bypass literacy tests, poll taxes, or other barriers to voting if their grandfathers had been eligible to vote, effectively disenfranchising many African Americans.