1-a an investor has decided to invest a total of 50000, Ask an Expert

Management Studies

1-a) An investor has decided to invest a total of $50,000 (maximum) among three investment opportunities: savings certificates, bonds, and stocks. The annual return on each investment is estimated to be 7%, 9% and 14% respectively. The investor does not intend to invest his annual returns. He would like to maximize his returns while investing a minimum of 10,000 in bonds. Also, the investment in stocks should not exceed the combined total investment in bonds and savings certificates. Finally, he should invest between $5000 and $15000 in savings certificates. Formulate a Linear program to assist the investor towards making his investment decisions.

1-b) Now reconsider the same investment of 50,000 with only two options: bonds and stocks. The annual return on each investment is estimated to be 9% for bonds and 14% for stocks. The investor would like to maximize his returns while investing twice the amount he invests for stocks in bonds. Reformulate the LP and use the graphical solution method to obtain the optimal allocation.

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92511316

Have any Question?Write your Review or question?

Related Questions in Operation Management

1 name five key ethical principles that impact the health

1. Name five key ethical principles that impact the health care environment. what examples of each are commonly seen in health care and why. 2. Describe your preferred conflict-management style (collaborative, competitiv ...

1 summarize the characteristics of the four different types

1. Summarize the characteristics of the four different types of customer behaviors by taking an example from a single market such as the financial services industry 2. Does inspection add value to a product? 3. Create a ...

1 search and seizure differ between criminal investigations

1. Search and seizure differ between criminal investigations, administrative searches and inspections regarding regulated businesses? Explain fully, givin exampled of each Business Law 285 2. Compare and contrast managem ...

Assume that the contemporary apparel company juicy couture

Assume that the contemporary apparel company Juicy Couture has embarked upon a new Integrated Marketing Campaign. The message is designed to announce new styles for the "back to school season" and uses a 16-year-old woma ...

A local pastry shop sells a whipped-cream layer cake it

A local pastry shop sells a whipped-cream layer cake. It costs $10 to prepare each cake and fresh cakes sell for $20. The demand for the cakes can be approximated by a Normal distribution with mean = 10 and standard devi ...

Product development amp operations - category manager

Product Development & Operations - Category Manager Analysis Note: While representative of possible situations faced by Alikay Naturals, all scenarios in this assignment are fictional. Real Business Let's roll up our sle ...

Big time toymaker btt develops manufactures and distributes

Big Time Toymaker (BTT) develops, manufactures, and distributes board games and other toys to the United States, Mexico, and Canada. Chou is the inventor of a new strategy game he named Strat. BTT was interested in distr ...

My questions comes under mba 5005 in a question for a paper

My questions comes under MBA 5005 in a question for a paper. Legal and Ethical Challenges in a Multinational Organization. Identify potential ethical and propose recommendations for future occurrences. Need help in answe ...

1 how organizations and industrial psychologists measure

1. How organizations and industrial psychologists measure individual attributes in the workplace. 2. Research at least two articles on the topic of big data and its business impacts. Write a brief synthesis and summary o ...

The frequency of users at an atm machine is estimated at an

The frequency of users at an ATM machine is estimated at an average of 15 people arriving every 30 mins. Assuming the arrival times are exponentially distributed and each customer may spend anywhere between 1-5 minutes a ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert