Q: TheEpsilon Delta Capital considers dropping the minimum investment requirement of $20 million on all product groups. If this requirement is removed from the Epsilon Delta Capital model, and the rest of the model remains unchanged, what is the new optimal expected return, in $ millions? Choose the closest among the values below.
or
Q: Epsilon Delta Capital is thinking about removing the $20 million minimum investment threshold for all product categories. What is the new optimal anticipated return, expressed in millions of dollars, if this condition is eliminated from the Epsilon Delta Capital model and the remainder of the model stays the same? From the values below, select the closest one.
- 6.66
- 6.46
- 6.56
- 6.16
- 6.36
- 6.26
Without the specific expected returns for each group, we cannot compute the exact expected return. However, generally, if we expect the removal of constraints to lead to better investment strategies, the new expected return would be the highest value among those listed. The likely new optimal expected return after the constraint removal is 6.66 million, assuming it reflects the best possible outcome given the increased flexibility in allocation.
