Multiple Choice
Exhibit 7.2
The following questions are based on the problem below.
An investor has $150,000 to invest in investments A and B. Investment A requires a $10,000 minimum investment, pays a return of 12% and has a risk factor of .50. Investment B requires a $15,000 minimum investment, pays a return of 10% and has a risk factor of .20. The investor wants to maximize the return while minimizing the risk of the portfolio. The following multi-objective linear programming (MOLP) has been solved in Excel.
-Refer to Exhibit 7.2. What formula goes in cell B10?
A) =SUMPRODUCT(B2:C2,$B$6:$C$6) /$D$7
B) =B2*C2+B3*C3
C) =SUMPRODUCT(B3:C3,$B$6:$C$6) /$D$7
D) =SUMPRODUCT(B2:C2,$B$6:$C$6)
Correct Answer:

Verified
Correct Answer:
Verified
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