An Investor Wants to Invest $50,000 in Two Mutual Funds,ANote That a Low Risk Rating Means a Less Risky

The Answer of An Investor Wants to Invest $50,000 in Two Mutual Funds,ANote That a Low Risk Rating Means a Less Risky

An Investor Wants to Invest $50,000 in Two Mutual Funds,ANote That a Low Risk Rating Means a Less Risky

The Answer of An Investor Wants to Invest $50,000 in Two Mutual Funds,ANote That a Low Risk Rating Means a Less Risky

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

question 14

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:
$\begin{array}{lrrr}&&&\text { Minimum }\\\text { Fund } & \text { Rate of return } & \text { Risk }&\text { investment }\\\hline\mathrm{A} & 12 \% & 0.5 & \$ 20,000 \\\mathrm{~B} & 9 \% & 0.3 & \$ 10.000\end{array}$
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:
$An investor wants to invest $50,000 in two mutual funds,A and B.The rates of return,risks and minimum investment requirements for each fund are: \begin{array}{lrrr}&&&\text { Minimum }\\ \text { Fund } & \text { Rate of return } & \text { Risk }&\text { investment }\\ \hline\mathrm{A} & 12 \% & 0.5 & \$ 20,000 \\ \mathrm{~B} & 9 \% & 0.3 & \$ 10.000 \end{array} Note that a low Risk rating means a less risky investment.The investor can invest to maximize the expected rate of return or minimize risk.Any money beyond the minimum investment requirements can be invested in either fund. The following is the MOLP formulation for this problem: The solution for the second LP is X1,X2)= 20,000,30,000). What formulas should go in cells B2:D11 of the spreadsheet? NOTE: Formulas are not required in all of these cells. \begin{array}{|c|c|c|c|c|} \hline & \text { A } & \text { B } & \text { C } & \text { D } \\ \hline 1 & \text { Problem data } & \text { A } & \text { B } & \\ \hline 2 & \text { Expected return } & 12 \% & 9 \% & \\ \hline 3 & \text { Risk rating } & 0.50 & 0.20 & \\\hline 4\\\hline 5 & \text { Variables } & \text { A } & \text { B } & \text { Total } \\ \hline 6 & \text { Amount invested } & \$ 20,000 & \$ 30,000 & \$ 50,000 \\ \hline 7 & \text { Minimum required } & \$ 20,000 & \$ 10,000 & \$ 50,000 \\ \hline 8 & & & & \\\hline 9 & \text { Objectives: } & \\ \hline 10 & \text { Average return } & 10.2 \% \\ \hline 11 & \text { Average risk } & 0.32 \\ \hline \end{array}$
$An investor wants to invest $50,000 in two mutual funds,A and B.The rates of return,risks and minimum investment requirements for each fund are: \begin{array}{lrrr}&&&\text { Minimum }\\ \text { Fund } & \text { Rate of return } & \text { Risk }&\text { investment }\\ \hline\mathrm{A} & 12 \% & 0.5 & \$ 20,000 \\ \mathrm{~B} & 9 \% & 0.3 & \$ 10.000 \end{array} Note that a low Risk rating means a less risky investment.The investor can invest to maximize the expected rate of return or minimize risk.Any money beyond the minimum investment requirements can be invested in either fund. The following is the MOLP formulation for this problem: The solution for the second LP is X1,X2)= 20,000,30,000). What formulas should go in cells B2:D11 of the spreadsheet? NOTE: Formulas are not required in all of these cells. \begin{array}{|c|c|c|c|c|} \hline & \text { A } & \text { B } & \text { C } & \text { D } \\ \hline 1 & \text { Problem data } & \text { A } & \text { B } & \\ \hline 2 & \text { Expected return } & 12 \% & 9 \% & \\ \hline 3 & \text { Risk rating } & 0.50 & 0.20 & \\\hline 4\\\hline 5 & \text { Variables } & \text { A } & \text { B } & \text { Total } \\ \hline 6 & \text { Amount invested } & \$ 20,000 & \$ 30,000 & \$ 50,000 \\ \hline 7 & \text { Minimum required } & \$ 20,000 & \$ 10,000 & \$ 50,000 \\ \hline 8 & & & & \\\hline 9 & \text { Objectives: } & \\ \hline 10 & \text { Average return } & 10.2 \% \\ \hline 11 & \text { Average risk } & 0.32 \\ \hline \end{array}$

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.
$\begin{array}{|c|c|c|c|c|}\hline & \text { A } & \text { B } & \text { C } & \text { D } \\\hline 1 & \text { Problem data } & \text { A } & \text { B } & \\\hline 2 & \text { Expected return } & 12 \% & 9 \% & \\\hline 3 & \text { Risk rating } & 0.50 & 0.20 & \\\hline 4\\\hline 5 & \text { Variables } & \text { A } & \text { B } & \text { Total } \\\hline 6 & \text { Amount invested } & \$ 20,000 & \$ 30,000 & \$ 50,000 \\\hline 7 & \text { Minimum required } & \$ 20,000 & \$ 10,000 & \$ 50,000 \\\hline 8 & & & & \\\hline 9 & \text { Objectives: } & \\\hline 10 & \text { Average return } & 10.2 \% \\\hline 11 & \text { Average risk } & 0.32 \\\hline\end{array}$

Definitions:

Secondary Sex Characteristics

are features that distinguish the two sexes of a species, but are not directly involved in reproduction, such as body hair or voice pitch.

Gonad

A reproductive gland that produces gametes (sperm in males and eggs in females) and sex hormones, such as testes in males and ovaries in females.

Chromosomes

Chromosomes are long strands of DNA and proteins found in the nucleus of most living cells, carrying genetic information in the form of genes.

Sperm

Male reproductive cells or gametes in sexually reproducing organisms, containing genetic information to fertilize the female ovum.