Exhibit 7.3 The Following Questions Are Based on the Problem Below

question 50

Multiple Choice

Exhibit 7.3
The following questions are based on the problem below.
An investor has $150,000 to invest in investments A and B. Investment A requires a $10,000 minimum investment, pays a return of 12% and has a risk factor of .50. Investment B requires a $15,000 minimum investment, pays a return of 10% and has a risk factor of .20. The investor wants to maximize the return while minimizing the risk of the portfolio. The following minimax formulation of the problem has been solved in Excel.

-Refer to Exhibit 7.3. What formula goes in cell E11?

• A)=D11*(C11-B11)/C11
• B)=(C11-B11)/C11
• C)=D11*C11
• D)=D11*(C11- B11)

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Definitions:

Pectoralis Major

A large muscle in the upper chest that functions in the movement of the shoulder and upper arm.

Deltoid

A large, triangular muscle covering the shoulder joint and responsible for lifting and rotating the arm.

Biceps Brachii

A muscle located in the upper arm that helps control the motion of the shoulder and elbow, important for lifting and pulling actions.

Serratus Anterior

A muscle located on the side of the chest that assists in the movement of the shoulder blade (scapula), essential for activities like lifting arms and breathing.