Ivana Myrocle wishes to invest her inheritance of $200,000

Ivana Myrocle wishes to invest her inheritance of $200,000 so that her return on investment is maximized, but she also wishes to keep her risk level relatively low. She has decided to invest her money in any of three possible ways: CDs, which pay a guaranteed 6 percent; stocks, which have an expected return of 13 percent; and a money market mutual fund, which is expected to return 8 percent. She has decided that any or all of the $200,000 may be invested, but any part (or all) of it may be put in any of the 3 alternatives. Thus, she may have some money invested in all three alternatives. In formulating this as a linear programming problem, define the variables as follows:

C= dollars invested in CDs

S = dollars invested in stocks

M = dollars invested in the money market mutal fund

According to Table 8-5, which describes an investment problem, suppose that Ivana has assigned the following risk factors to each investment instrument CDs (C): 1.2; stocks (S): 4.8; money market mutual fund (M): 3.2. If Ivana decides that she wants the risk factor for the whole investment to be less than 3.3, how should the necessary constraint be written?

1.2C + 4.8S + 3.2M 3.3

C + S + M 3.3

1.2C + 4.8S + 3.2M 3.3(C + S + M)

(1.2C + 4.8S + 3.2M)/3 3.3

S = 0

How Our Website Works

1. FILL IN OUR SIMPLE ORDER FORM

It has never been easier to place your order. Fill in the initial requirements in the small order form located on the home page and press “continue” button to proceed to the main order form or press “order” button in the header menu. Starting from there let our system intuitively guide you through all steps of ordering process.

2. PROCEED WITH THE PAYMENT

All your payments are processed securely through PayPal. This enables us to guarantee a 100% security of your funds and process payments swiftly.

3. WRITER ASSIGNMENT

Next, we match up your order details with the most qualified freelance writer in your field.

4. WRITING PROCESS

Once we have found the most suitable writer for your assignment, they start working on a masterpiece just for you!

5. DELIVERY

Once finished, your final paper will be available for download through your personal dashboard. You will also receive an email notification with a copy of your paper attached to it. Sometimes, the writer may leave a note for you about the order in case there is any additional information that they need to give you.

Leave a Reply

Your email address will not be published.