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​Create a Linear Programming Problem with Two Decision Variables and Three

question 39

Essay

​Create a linear programming problem with two decision variables and three constraints that will include both a slack
and a surplus variable in standard form. Write your problem in standard form.


Definitions:

Portfolio

A portfolio containing various financial instruments such as stocks, bonds, commodities, plus cash and cash equivalents, in addition to closed-end funds and ETFs.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, commonly used to quantify the amount of variation.

Stock

A kind of financial instrument that indicates possession in a company and symbolizes a right to a portion of the firm's assets and profits.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher than average market volatility.

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