Question: Larger amounts of money invested in things like CDs (certificates of deposit) get a better rate of return. Suppose the rates of return depend on the amount invested as follows:
Three companies are going to form an investment partnership to pool their money. Suppose Company 1 will invest $1,800,000, company 2, $900,000, and company 3, $300,000. How should the net amount earned on the total investment be split among the three companies? Define an appropriate characteristic function. Find the core.