Linear programming is appropriate for financial problem situations involving capital budgeting,asset allocation,financial planning,and portfolio selection.

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Quizplus · Accepted Answer

Linear programming is indeed appropriate for financial problem situations such as capital budgeting (which involves allocating financial resources to various investments), asset allocation (which involves determining the optimal mix of different types of investments), financial planning (which involves creating a long-term financial plan), and portfolio selection (which involves choosing which investments to include in a portfolio). Linear programming can help to optimize these decisions by balancing different constraints and objectives while maximizing or minimizing a particular goal, such as maximizing returns while minimizing risk.

Linear Programming Is Appropriate for Financial Problem Situations Involving Capital