An Investor Wants to Invest $50,000 in Two Mutual Funds

question 7

Essay

An investor wants to invest $50,000 in two mutual funds, A and B. The rates of return, risks and minimum investment requirements for each fund are:
Note that a low Risk rating means a less risky investment. The investor can invest to maximize the expected rate of return or minimize risk. Any money beyond the minimum investment requirements can be invested in either fund.The following is the MOLP formulation for this problem:
The solution for the second LP is (X₁, X₂) = (20,000, 30,000).
What formulas should go in cells B2:D11 of the spreadsheet? NOTE: Formulas are not required in all of these cells.

---

Definitions:

Delaying of Action

Postponing a decision or activity to a later time, synonym to delays action but emphasizing the postponement aspect.

Reader Benefits

Advantages or valuable information that readers can gain from engaging with a text.

Report Titles

The heading or the name given to a report that summarizes its contents or focus in a concise manner.

Perceptions of Trustworthiness

Pertains to the degree to which an individual or entity is believed to be reliable, credible, and worthy of trust by others.