2. (40 points) You are about to invest your entire saving of $200,000 in the stock market. The risk has to be minimized. How many stocks of each of the following 4 options should you buy with the following conditions: Stock: Ford Motor Co. Stock: FTR Price / Share Mutual Fund Magna $8 $4 $10 $48 Return on Investment 6% 10% 3% 8% Risk to lose 10% 20% 1% 6% Number of shares you purchase must be a whole number the Return must be bigger than 7% the amount invested in Mutual Fund should be at most 90% of the amount invested in Ford & FTR combined the number of shares of Ford & FTR combined (not the amount) should be at most 10 times of number of shares of Magna Minimum investment in each stock or mutual fund should be 10% of the total saving How much is the return of investment?? Find all the Slacks & Surpluses - indicate which one is slack and which one is surplus What is the risk of the optimized solution? How much can we lose