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4. An investor has $40.000 available. He plans to invest in three types of funds. Fund A has a projected 8% annual return rate, Fund

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4. An investor has $40.000 available. He plans to invest in three types of funds. Fund A has a projected 8% annual return rate, Fund B has a projected 10% annual return rate, and Fund C has a 9% annual return rate. He has decided to invest no more than 30 percent of the total amount in Fund B and no more than 40 percent of the total amount in Fund C. He runs a linear optimization analysis with the goal of maximizing the annual return. He finds that the maximum return is $3,600 according to the available money and all constraints. According to optimization reports, the investor should allocate $16,000 to buy Fund C. The status of the investment in Fund C shows "Binding", and the shadow price for the investment in Fund C is 0.01. Which statement is correct? A. Since the shadow price is 0.01. the investor can buy Fund C for $0.01 per share. B. Since the shadow price is 0.01, the slack value of the investment in Fund C should be 0.01 C. According to the reported shadow price, if the investor increases $1 investment in Fund C, he can only get increase the annual return by $0.01 D. Since the status is "Binding", the shadow price of Fund C is too expensive

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