4. (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 (they don't sell a fraction of a stock) of each of the following 4 options should you buy with the following conditions: Price/ Share Return on Investment Risk to lose Stock: Ford Motor Co $8 6% 10% Stock: FTR $4 10% 20% Mutual Fund $10 3% 1% Magna $48 7% 5% the Return must be bigger than 7% the amount invested in Mutual Fund should be at least 50% of the amount invested in Ford & FTR combined . the number of shares of Ford & FTR combined (not the amount) should be at most 11 times of number of shares of Magna Minimum investment in each stock or mutual fund should be 10% of the total saving e 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? November 2, 2018 Page 1 of 1 4. (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 (they don't sell a fraction of a stock) of each of the following 4 options should you buy with the following conditions: Price/ Share Return on Investment Risk to lose Stock: Ford Motor Co $8 6% 10% Stock: FTR $4 10% 20% Mutual Fund $10 3% 1% Magna $48 7% 5% the Return must be bigger than 7% the amount invested in Mutual Fund should be at least 50% of the amount invested in Ford & FTR combined . the number of shares of Ford & FTR combined (not the amount) should be at most 11 times of number of shares of Magna Minimum investment in each stock or mutual fund should be 10% of the total saving e 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? November 2, 2018 Page 1 of 1