Chapter 3 Problem 7 - -Funds Available would increase...

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Bill Frino MNMK 413 Chapter 3 Problem #7 Monday, February 07, 2011 Resubmission A. What is the optimal solution, and what is the value of the total annual return? -The optimal solution is $8400. B. Which constraints are binding? What is your interpretation of these constraints in terms of the problem? -There binding constraints are Funds Available and Risk Maximum. C. What are the dual prices for the constraints? Interpret each?
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Unformatted text preview: -Funds Available would increase $0.0933.-Risk Maximum would increase $1.33. D. Would it be beneficial to increase the maximum amount invested in US Oil? Why or why not?-It would not be beneficial because an increase makes no difference. An increase creates more slack and more surplus....
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