An investor is developing a portfolio of stocks. She has identified 3 stocks in which to invest. She wants to earn at least 11% return but with minimum risk.
The average return for the stocks is: The covariance matrix for the stocks is: Let: P_i = proportion of total funds invested in i, i = A, B, C
Formulate the NLP for this problem.

Question

An investor is developing a portfolio of stocks. She has identified 3 stocks in which to invest. She wants to earn at least 11% return but with minimum risk.
The average return for the stocks is:

The covariance matrix for the stocks is: An investor is developing a portfolio of stocks. She has identified 3 stocks in which to invest. She wants to earn at least 11% return but with minimum risk. The average return for the stocks is: The covariance matrix for the stocks is: Let: P<sub>i</sub> = proportion of total funds invested in i, i = A, B, C Formulate the NLP for this problem.

Let: P_i = proportion of total funds invested in i, i = A, B, C
Formulate the NLP for this problem.

Quizplus · Accepted Answer

The Answer of An investor is developing a portfolio of stocks. She has identified 3 stocks in which to invest. She wants to earn at least 11% return but with minimum risk. The average return for the stocks is: The covariance matrix for the stocks is: Let: P_i = proportion of total funds invested in i, i = A, B, C Formulate the NLP for this problem.

An Investor Is Developing a Portfolio of Stocks