An investor wants to invest $50,000 in two mutual funds, A and B. The rates of return, risks and minimum investment requirements for each fund are:
Note that a low Risk rating means a less risky investment. The investor can invest to maximize the expected rate of return or minimize risk. Any money beyond the minimum investment requirements can be invested in either fund.The following is the MOLP formulation for this problem:
The solution for the second LP is (X1, X2) = (20,000, 30,000).
What formulas should go in cells B2:D11 of the spreadsheet? NOTE: Formulas are not required in all of these cells.
Correct Answer:
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