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7 . a . U = 8 0 0 H = 1 2 0 0 Estimated Annual Return = $ 8 4 0 0 b

7. a. U =800
H =1200
Estimated Annual Return = $8400
b. Constraints 1 and 2. All funds available are being utilized and the maximum permissible risk is being incurred.
c.
Constraint Dual Values
Funds Avail. 0.09
Risk Max 1.33
U.S. Oil Max 0
d. No, the optimal solution does not call for investing the maximum amount in U.S. Oil.

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