1.A portfolio consists of three stocks, S1, S2, and S3. X1, X2, and X3 represent the amount of money invested in each of the three stocks.

2.1The amount invested in stock 1 must not exceed 110% of the amount invested in stock 2 and 3 combined. Which constraint expresses this requirement?

a.X1 - (X2 +X3) <= 110

b.1.1*X1 <= X2 + X3

c.X1 >= 1.1(X2 + X3)

d.None of the above

2.2The annual rates of return of the three stocks for two possible scenarios are:

(i) Best case scenario 5.5%, 6.5%, and 8%. (ii) Worst case scenario -1.5%, 0.5%, 4%. Management wants to make sure the overall annual return does not fall short of $10000. Which constraint meet this requirement?