A Mutual Fund Manager Must Decide How Much Money to Invest

question 10

Multiple Choice

A mutual fund manager must decide how much money to invest in Atlantic Oil (A) and how much to invest in Pacific Oil (P) .At least 60% of the money invested in the two oil companies must be in Pacific Oil.A correct modeling of this constraint is

• A)0.4A + 0.6P > 0.
• B)-0.4A + 0.6P > 0.
• C)0.6A + 0.4P > 0.
• D)-0.6A + 0.4P > 0.

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Definitions:

Ultimate Return

The total return received from an investment, including all sources of income and capital gains, over the entire holding period.

Technical Analysis

The study of historical market data, including price and volume, to predict future market behavior primarily for trading decisions.

Macroeconomic Data

Information relating to the overarching conditions of an economy, including metrics such as GDP, unemployment rates, and inflation.

Taxing Authorities

Governmental bodies responsible for imposing and collecting taxes, such as the Internal Revenue Service (IRS) in the United States.