A Maximizing Linear Programming Problem Has Two Constraints: 2X

question 5

Multiple Choice

A maximizing linear programming problem has two constraints: 2X + 4Y < 100 and 3X + 10Y < 210, in addition to constraints stating that both X and Y must be nonnegative. The corner points of the feasible region of this problem are

• A) (0, 0), (50, 0), (0, 21), and (20, 15)
• B) (0, 0), (70, 0), (25, 0), and (15, 20)
• C) (20, 15)
• D) (0, 0), (0, 100), and (210, 0)
• E) none of the above

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, often used to quantify the risk of an investment.

Global-minimum Variance Portfolio

An investment portfolio that is constructed to have the lowest possible risk (variance) for a given rate of return.

Investment Opportunity Set

The set of available investment choices available to an investor, considering their risk tolerance and time horizon for investing.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation, a creditor relationship with a governmental body or a corporation, or rights to ownership as represented by an option.