According to Table 8-7, which describes an investment problem, suppose that Ivana has assigned the following risk factors to each investment instrument — CDs (C): 1.2; stocks (S): 4.8; money market mutual fund (M): 3.2
If Ivana decides that she wants the risk factor for the whole investment to be less than 3.3, how should the necessary constraint be written?
A) 1.2C + 4.8S + 3.2M ? 3.3
B) C + S + M ? 3.3
C) 1.2C + 4.8S + 3.2M ? 3.3(C + S + M)
D) (1.2C + 4.8S + 3.2M)/3 ? 3.3
E) S = 0
C
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