The selection of specific investments from among a wide variety of alternatives is the type of LP problem known as the portfolio selection problem.

Question

Quizplus · Accepted Answer

The statement is correct. The portfolio selection problem involves selecting a combination of assets to create an investment portfolio that meets the investor's objectives, such as maximizing return while minimizing risk. The problem can be formulated as an LP problem, where the objective function is to maximize the expected return subject to various constraints, such as budget constraints, allocation constraints, and risk limits.

The Selection of Specific Investments from Among a Wide Variety