5. You are a mutual fund manager response for rebalancing the equities within th

Question

5. You are a mutual fund manager response for rebalancing the equities within the fund to maximize the return while minimizing risk. The matrix below shows the historical return on each equity. To reduce risk, you do not want to put more than 15% of your money into any one stock. Plus you also do not want more than 50% of your money in any one sector, what is the linear program to maximize return while minimizing risk? Stock Sector Historical return 3% 2% 3% 5% 1% Technology Technology Technology DMANI Entertainment Entertainment Entertainment Financial Services Financial Services Financial Services 7.5% 3% There are 4 people who can do 4 different jobs. write a matrix of the amount of time each person can do each of the jobs-make up these times. Then for this matrix what is the linear program that assigns one person to each job and that each job is assigned to one person only, that minimizes the total time? 6· Dn bo 20 F4

Explanation / Answer

Let x stands for Technology, y for Entertainment and z for Finanacial Services.

Then, we have

x<15%, y<15%, z<15%

3x<50%, 4y<50%, 3z<50%

and

3x+4y+3z=100

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