Average Estimates Investment

Stock Return Variance Variables Proportion

Altacam 0.08 0.009 x1 = 0.36
Besico 0.09 0.015 x2 = 0.272
Com.com 0.16 0.04 x3 = 0.315
Delphi 0.12 0.023 x4 = 0.053
Total desired return 0.11 sum = 1

Correlation
Stock altacam besico com.com delphi
Altacam 1 0.4 0.3 0.6
Besico 0.4 1 0.2 0.7
Com.com 0.3 0.2 1 0.4
Delphi 0.6 0.7 0.4 1

Total portfolio return = 0.11004

Total variance = 0.0145435206
Total Proportion invested = 1
 Average Estimates Investment
Stock Return Variance Variables Proportion
Altacam 0.08 0.009 x1 = 0
Besico 0.09 0.015 x2 = 0.320721
Com.com 0.16 0.04 x3 = 0.679279
Delphi 0.12 0.023 x4 = 0
Total desired return 0.02 sum = 1

Correlation
Stock altacam besico com.com delphi
Altacam 1 0.4 0.3 0.6
Besico 0.4 1 0.2 0.7
Com.com 0.3 0.2 1 0.4
Delphi 0.6 0.7 0.4 1

Total portfolio return = 0.13755

Total variance = 0.02
Total Proportion invested = 1
 14 Following are the a and b parameters for daily sales in each region:
Region
1 2 3 4 5
a $ 15,000 $ 24,000 $ 8,100 $ 12,000 $ 21,000
b $ 9,000 $ 15,000 $ 5,300 $ 7,600 $ 12,500

Daily expense budget $ 6,500

(including travel 1 2 3 4
costs) per
$ 14,645 representative for $ 355 $ 540 $ 290 $ 275
$ 23,460
$ 7,810 Regions
$ 11,725 1
$ 20,510 2
3
4
5

Used
Available
Representatives = 15
Daily expense budget = $ 1,460 $ 6,500

Total Profit =