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The risk index is a measure of uncertainty. These figures are based upon how volatile the selling prices of the stocks have been in the

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The risk index is a measure of uncertainty. These figures are based upon how volatile the selling prices of the stocks have been in the past and 110W uncertain the consultants are of their movements in the future. The expected return is the expected return of the stock considering the everything else including dividends and increase in sale price. The consultants must determine how much of the $3,000,000 should be allocated to each stock. Their objective is to maximize the total expected return of the portfolio. The allocation of these funds must, however, be within the guidelines of the following three policies: . The average risk index must not exceed 8. - The portfolio must pay an annual dividend of at least $100,000. . Due to the nature of the industries, at least one-third of the portfolio must be invested into stocks 1, 2, and 3, and at least one-third must be invested into stocks 4, S, and 6. How should the three million dollars be invested among the six securities so as to

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