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?

a.5.5%X1+6.5%X2+8%X3 >= 10000

b.- 0.015X1 + 0.005X2 + 0.04X3 >= 10000

c.(0.055+(- 0.015)X1 + (0.065+0.005)X2 + (0.08+0.04)X3 >=10000

d.None of the above