A mutual fund manager must decide how much money to invest in Atlantic Oil (*A*) and how much to invest in Pacific Oil (*P*). A correct modeling of the constraint on the fraction of money invested is

Group of answer choices

P+A=100%

P+A<100%

P+A>100%

P=A

The correct answer is:

**P + A = 100%**

### Explanation
In this case, *P* and *A* represent the fractions of the total investment allocated to Pacific Oil and Atlantic Oil, respectively. Since the fund manager must decide how to divide the entire available investment between these two options, the sum of *P* and *A* should equal 100% of the investment amount.

Thus:
- **P + A = 100%** is correct because it indicates that the total investment is fully allocated between Pacific Oil and Atlantic Oil.

The other options are incorrect because:
- **P + A < 100%** would imply that less than the total available investment is allocated, which typically wouldn't happen without a reason to keep some funds uninvested.
- **P + A > 100%** would imply that more than the available funds are invested, which is not feasible.
- **P = A** would imply equal investment in both companies, but this isn’t a requirement in the problem.

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Would you like additional details on investment constraints or any other part of this solution?

Here are some related questions to consider:

1. How would the constraint change if there were three investment options instead of two?
2. What other constraints might a fund manager consider when investing in multiple companies?
3. How do risk factors play a role in determining the fraction of money invested in each option?
4. Could the fund manager choose to invest less than the total available funds?
5. What are some methods for determining the optimal split of investments between multiple companies?

**Tip:** In investment problems, constraints often reflect limited resources or specific requirements, such as dividing funds between different opportunities.

A mutual fund manager must decide how much money to invest in Atlantic Oil (*A*) and how much to invest in Pacific Oil (*P*). A correct modeling of the constraint on the fraction of money invested is

Explore how to model investment constraints for mutual funds, specifically focusing on the total allocation between Atlantic Oil and Pacific Oil. Learn why the correct formula is P + A = 100%, ensuring full investment allocation. Ideal for students in Grades 9-12.

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