# Refer to Problem 10 and the computer solution shown in Refer FigureTHE MANAGEMENT SCIENTIST SOLUTION FOR THE INNIS INVESTMENTS PROBLEM a. Suppose the risk index for the stock fund (the value of CS) increases from its current value of 8 to 12. How does the optimal solution change, if at all?b. Suppose the risk index for the money market fund

Chapter 8, Problems #11

Refer to Problem 10 and the computer solution shown in Refer Figure

THE MANAGEMENT SCIENTIST SOLUTION FOR THE INNIS INVESTMENTS PROBLEM

THE MANAGEMENT SCIENTIST SOLUTION FOR THE INNIS INVESTMENTS PROBLEM

a. Suppose the risk index for the stock fund (the value of CS) increases from its current value of 8 to 12. How does the optimal solution change, if at all?

b. Suppose the risk index for the money market fund (the value of CM) increases from its current value of 3 to 3.5. How does the optimal solution change, if at all?

c. Suppose CS increases to 12 and CM increases to 3.5. How does the optimal solution change, if atall?

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**Related Book For**

## Quantitative Methods for Business

11th Edition

Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam

ISBN: 978-0324651751