Portfolio Manager Max Gaines Needs to Develop an Investment Portfolio

question 15

Essay

Portfolio manager Max Gaines needs to develop an investment portfolio for his conservative clients.His task is to determine the proportion of the portfolio to invest in each of the five mutual funds listed below so that the portfolio provides the best return possible with a minimum risk.Formulate the maximin linear program.​ ​

Grasp the significance of economic profits and losses in resource allocation and output composition.

Analyze the impact of consumer preferences on the allocation of resources and the structure of output in a market economy.

Understand the fundamental questions of economics regarding what, how, and for whom goods and services are produced.

Comprehend the concept of consumer sovereignty and its effect on the production of goods and services.

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Definitions:

Breached Contract

A breached contract occurs when one party fails to perform their obligations under the terms of the agreement, leading to legal consequences and potentially damages.

Uniform Electronic Transactions Act (UETA)

A law adopted by most U.S. states that establishes the legal validity of electronic records and signatures for commercial transactions.

Electronic Commerce

The buying and selling of goods and services, or the transmission of funds or data, over an electronic network, primarily the internet.

Electronic Records

Information or data that is stored in a digital format, allowing for easier access, manipulation, and storage compared to traditional paper records.