Referring to the Texas Lotto situation in Problem 7-20,
suppose the investor has changed his attitude about
the investment and wishes to give greater emphasis
to the risk of the investment. Now the investor
wishes to minimize the risk of the investment as
long as a return of at least 8% is generated. Formu-
this as an LP problem and find the optimal solu-
‘fiflli. How much should be invested in each stock?
is the average risk for this investment‘? What is
return for this investment?
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