An Investor Is Developing a Portfolio of Stocks $\sigma$ _i² = Variance of Stock I

question 9

Multiple Choice

An investor is developing a portfolio of stocks. She has identified 3 stocks in which to invest. She wants to earn at least 5% return but with minimum risk. Let:
P_i = proportion of total funds invested in stock i
$\sigma$ _i² = variance of stock i
$\sigma$ _ij = covariance between stocks i and j.R_i = average return on stock i
What is the objective function for the NLP formulation of this problem?

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