A typical constraint in the portfolio selection problem formulated in LP would be to maintain risk below some specified amount.

Name: A typical constraint in the portfolio selection problem formulated in LP would be to maintain risk below some specified amount.
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Quizplus · Accepted Answer

This is true as one of the main objectives in portfolio selection is usually to manage risk or volatility in the portfolio. Therefore, it is common to include a constraint in the LP formulation that limits the portfolio risk to a certain level.

A Typical Constraint in the Portfolio Selection Problem Formulated in LP