Exhibit 7.2 The Following Questions Are Based on the Problem Below

question 9

Multiple Choice

Exhibit 7.2
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 multi-objective linear programming (MOLP) has been solved in Excel.
-Refer to Exhibit 7.2. What formula goes in cell B11?

• A) =SUMPRODUCT(B2:C2,$B$6:$C$6)/$D$7
• B) =B2*C2+B3*C3
• C) =SUMPRODUCT(B3:C3,$B$6:$C$6)/$D$7
• D) =SUMPRODUCT(B3:C3,$B$6:$C$6)

---

Definitions:

South Africa

A country located at the southern tip of Africa, noted for its diverse cultures, languages, and history of apartheid.

Racial Inequality

The unequal treatment or perceptions of individuals based on their race, leading to disparities in income, education, employment, health, and other areas.

Operation Desert Storm

The combat phase of the Gulf War, launched in January 1991, to liberate Kuwait from Iraqi occupation.

Iraqi Army

The military land force component of Iraq, responsible for defending the country and its interests.