Use the Table Below to Answer the Following Question(s) The Company Recommends That No More Than $300,000 Be Invested
Use the table below to answer the following question(s) .
Qualis Investments is a private limited business that manages personal financial portfolios.The company manages six mutual funds and has a client that has acquired $750,000 from an inheritance.Characteristics of the funds are given in the table below.
The company recommends that no more than $300,000 be invested in any individual fund, and that at least $80,000 be invested in each of the mid-cap stock and mortgage fund.The total amount invested in the low-priced and multinational funds are at least 35% of the total investment.The client would like an average return of at least 6%.Assume that through represents the dollar amount invested in funds 1 through 6, respectively.
-Which of the following is the objective function minimize total risk?
A) 11.87 X₁ + 12.62 X₂ + 13.72 .X₃ + 3.37 X₄ + 8.4 X₅ + 6.91 X₆
B) 7) 23 X₁ + 8.42 X₂ + 6.66 .X₃ + 2.72 X₄ + 8.89 X₅ + 3.5 X₆
C) 11.87 X₁ + 12.62 X₂ + 13.72 .X₃ + 3.37 X₄ + 8.4 X₅ + 6.91 X₆ / 750,000
D) 7) 23 X₁ + 8.42 X₂ + 6.66 .X₃ + 2.72 X₄ + 8.89 X₅ + 3.5 X₆ ≥ 6%
Correct Answer:
Verified
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