16
QuizMultiple Choice

N/A — Exam

Question 16 • Advanced Financial Algebra

A portfolio manager wants to distribute $⁢200,000 between two investments. The risk function is R⁡(x)=0.073⁢x^2−0.092⁢x+0.046 If x is the portion invested in the first option, how should the manager distribute the funds to minimize the risk? Round the answer to the nearest whole number if necessary.

Answer
A
First option: 120 dollars comma 000 Second option: 80 dollars comma 000
B
First option: 74 dollars comma 000 Second option: 126 dollars comma 000
C
First option: 126 dollars comma 000 Second option: 74 dollars comma 000
D
First option: 80 dollars comma 000 Second option: 120 dollars comma 000
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A portfolio manager wants to distribute…