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

question 65

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: 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 multi-objective linear programming (MOLP) formulation for this problem: The solution for the second LP is (X₁, X₂) = (20,000, 30,000).
Based on this solution, what values should go in cells B2:D11 of the spreadsheet?

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Definitions:

Nucleus Accumbens

A region of the brain involved in the reward circuit, associated with pleasure, reinforcement learning, and addiction.

Reward Center

Brain structures, such as the nucleus accumbens, involved in the processing of rewards and pleasures, critical in decision-making and reinforcement learning.

Hippocampal Brain Tumor

A malignant or benign growth in the hippocampus, an area of the brain that plays important roles in memory and spatial navigation.

Remembering New Information

The process of encoding, storing, and retrieving new data or facts for future use.