In a Portfolio Problem, X1, X2, and X3 Represent the Number

question 21

Multiple Choice

In a portfolio problem, X1, X2, and X3 represent the number of shares purchased of stocks 1, 2, and 3, which have selling prices of $15, $47.25, and $110, respectively. The investor has up to $50,000 to invest.
-An appropriate part of the model would be:

• A) 15X1 + 47.25X2 +110 X3 ≤ 50,000
• B) MAX 15X1 + 47.25X2 + 110X3
• C) X1 + X2 +X3 ≤ 50,000
• D) MAX 50(15)X1 + 50 (47.25)X2 + 50 (110)X3

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Definitions:

Sensing

The process of perceiving through the senses or a preference for dealing with concrete, tangible information.

Intuiting

The process of understanding or knowing something without the need for conscious reasoning or direct evidence.

Cognitive Style

An individual’s preferred method for gathering information and evaluating alternatives.

Evaluating Alternatives

The process of comparing and assessing different options in order to select the most appropriate or effective solution to a problem.