Qualis Investments is a private limited business that manages personal financial portfolios. The company manages six mutual funds and has a client that has acquired \( \$ 750,000 \) from an inheritance. Characteristics of the funds are given in the table below.
\begin{tabular}{|c|l|c|c|}
\hline & Qualis Mutual Fund Data & & \\
\hline & & \begin{tabular}{c}
Expected Annual \\
Return
\end{tabular} & Risk Measure \\
\hline 1 & Qualis Low-priced Stock Fund & \( 7.23 \% \) & 11.87 \\
\hline 2 & Qualis Multinational Fund & \( 8.42 \% \) & 12.62 \\
\hline 3 & Qualis Mid-cap Stock Fund & \( 6.66 \% \) & 13.72 \\
\hline 4 & Qualis Mortgage Fund & \( 2.72 \% \) & 3.37 \\
\hline 5 & Qualis Income Equity Fund & \( 8.89 \% \) & 8.4 \\
\hline 6 & Qualis Balanced Fund & \( 3.50 \% \) & 6.91 \\
\hline
\end{tabular}
The company recommends that no more than \( \$ 300,000 \) be invested in any individual fund, and that at least \( \$ 80,000 \) be invested in each of the mid-cap stock and mortgage fund. The total amount invested in the low-priced and multinational funds are at least \( 35 \% \) of the total investment. The client would like an average return of at least \( 6 \% \). Assume that \( X_{1}-X_{6} \) represent the dollar amounts invested in funds 1 through 6 , respectively.
44) Which of the following is the objective function minimize total risk?
A) \( 11.87 X_{1}+12.62 X_{2}+13.72 . X_{3}+3.37 X_{4}+8.4 X_{5}+6.91 X_{6} \)
B) \( 7.23 X_{1}+8.42 X_{2}+6.66 X_{3}+2.72 X_{4}+8.89 X_{5}+3.5 X_{6} \)
C) \( 11.87 X_{1}+12.62 X_{2}+13.72 . X_{3}+3.37 \mathrm{X}_{4}+8.4 X_{5}+6.91 X_{6} / 750,000 \)
D) \( 7.23 X_{1}+8.42 X_{2}+6.66 X_{3}+2.72 X_{4}+8.89 X_{5}+3.5 X_{6} \geq 6 \% \)
Answer the question then tell us why this is important to the business. What can optimization do for the place where you currently work or have worked in the past? If you have not work experience, how could a school use optimization.
