Exhibit 7.2
The following questions are based on the problem below.
An investor has $150,000 to invest in investments A and B. Investment A requires a $10,000 minimum investment, pays a return of 12% and has a risk factor of .50. Investment B requires a $15,000 minimum investment, pays a return of 10% and has a risk factor of .20. The investor wants to maximize the return while minimizing the risk of the portfolio. The following multi-objective linear programming (MOLP) has been solved in Excel.
-Refer to Exhibit 7.2. What formula goes in cell B10?
A) =SUMPRODUCT(B2:C2,$B$6:$C$6)/$D$7
B) =B2*C2+B3*C3
C) =SUMPRODUCT(B3:C3,$B$6:$C$6)/$D$7
D) =SUMPRODUCT(B2:C2,$B$6:$C$6)

Question

Exhibit 7.2
The following questions are based on the problem below.
An investor has $150,000 to invest in investments A and B. Investment A requires a $10,000 minimum investment, pays a return of 12% and has a risk factor of .50. Investment B requires a $15,000 minimum investment, pays a return of 10% and has a risk factor of .20. The investor wants to maximize the return while minimizing the risk of the portfolio. The following multi-objective linear programming (MOLP) has been solved in Excel. 
-Refer to Exhibit 7.2. What formula goes in cell B10?
A) =SUMPRODUCT(B2:C2,$B$6:$C$6)/$D$7 
B) =B2*C2+B3*C3 
C) =SUMPRODUCT(B3:C3,$B$6:$C$6)/$D$7 
D) =SUMPRODUCT(B2:C2,$B$6:$C$6)

Quizplus · Accepted Answer

The correct formula for cell B10, based on the context of calculating a weighted average or similar operation that involves summing products of corresponding entries in two ranges and then dividing by a constant, is =SUMPRODUCT(B2:C2,$B$6:$C$6)/$D$7. This formula multiplies each element in the range B2:C2 with the corresponding element in the range $B$6:$C$6, sums up these products, and then divides the result by the value in cell $D$7.

Exhibit 7.2 The Following Questions Are Based on the Problem Below