# Question: Referring to the Texas Lotto situation in Problem 7 20 suppose

Referring to the Texas Lotto situation in Problem 7-20 suppose the investor has changed his attitude about the investment and wishes to give greater emphasis to the risk of the investment. Now the investor wishes to minimize the risk of the investment as long as a return of at least 8% is generated. Formulate this as an LP problem and find the optimal solution. How much should be invested in each stock? What is the average risk for this investment? What is the estimated return for this investment?

In Problem 7-20, A winner of the Texas Lotto has decided to invest $ 50,000 per year in the stock market. Under consideration are stocks for a petrochemical firm and a public utility. Although a long- range goal is to get the highest possible return, some consideration is given to the risk involved with the stocks. A risk index on a scale of 1–10 (with 10 being the most risky) is assigned to each of the two stocks. The total risk of the portfolio is found by multiplying the risk of each stock by the dollars invested in that stock. The following table provides a summary of the return andrisk:

In Problem 7-20, A winner of the Texas Lotto has decided to invest $ 50,000 per year in the stock market. Under consideration are stocks for a petrochemical firm and a public utility. Although a long- range goal is to get the highest possible return, some consideration is given to the risk involved with the stocks. A risk index on a scale of 1–10 (with 10 being the most risky) is assigned to each of the two stocks. The total risk of the portfolio is found by multiplying the risk of each stock by the dollars invested in that stock. The following table provides a summary of the return andrisk:

## Answer to relevant Questions

Outdoors Inn (see Problem 7-41) expanded its tent-making operations later in the year. While still making the Double Inn tent, it is also making a larger tent, the Family Rolls, which has four rooms. The company can produce ...In Problem 9-24, the minimum travel distance was found. To see how much better this solution is than the assignments that might have been made, find the assignments that would give the maximum distance traveled. Compare this ...Truck drivers working for Juhn and Sons (see Problems 12-19 and 12-20) are paid a salary of $ 20 per hour on average. Fruit loaders receive about $ 12 per hour. Truck drivers waiting in the queue or at the loading gate are ...Repeat the simulation in Problem 13-21, assuming that the reorder point is 4 units rather than 2. Compare the costs for these two situations.In Problem 13-21, Dumoor Appliance Center sells and services several brands of ...In using the decomposition method, the forecast based on trend is found using the trend line. How is the seasonal index used to adjust this forecast based on trend?Post your question