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

question 29

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 wants to maximize the expected rate of return while minimizing his risk.Any money beyond the minimum investment requirements can be invested in either fund.The investor has found that the maximum possible expected rate of return is 11.4% and the minimum possible risk is 0.32.
Formulate a goal programming model with a MINIMAX objective function.

Comprehend the role and importance of an executive summary in a business plan.

Grasp the significance of conservative estimations in budget preparation for proposals.

Identify the critical elements that should be included in the methods section of a proposal.

Recognize the importance of clearly defining a problem across various types of proposals including sales, business plans, and grant proposals.

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Definitions:

Cingulated Cortex

A part of the brain situated in the medial aspect of the cerebral cortex, involved in processing emotions and behavior regulation.

Hippocampus

A major component of the brain, crucial for memory formation and spatial navigation.

Hypothalamus

A region of the brain that regulates many bodily functions including hunger, temperature, and hormonal activity.

Amygdala

A part of the brain involved in processing emotions, including fear, anxiety, and aggression.