A linear programming approach is usually used by managers involved in portfolio selection to
A)maximize return on investment.
B)maximize investment limitations.
C)maximize risk.
D)minimize risk.

Question

Quizplus · Accepted Answer

A linear programming approach in portfolio selection is used to maximize return on investment while balancing the level of risk. This is done by setting constraints on the amount of capital allocated to each investment and considering the expected returns and risks associated with each investment option. Therefore, choice A - maximize return on investment - is the best answer.

A Linear Programming Approach Is Usually Used by Managers Involved