Described the Little Investment Advisors problem and illustrated scaling issues. In answering the following questions, be sure
Question:
Described the Little Investment Advisors problem and illustrated scaling issues. In answering the following questions, be sure to scale the model appropriately.
a. How would the results in Figure change if there is a limit of $ 100,000 in each fund?
b. What if, in addition to the limitation in part (a), the client wants to invest at least $ 50,000 in the Federated High Income Bond fund?
c. What would be the optimal investment strategy if the client wants to minimize risk and achieve a return of at least 6% ( with no additional limita-tions or requirements)?
d. How would your results to part (c) change if there is a limit of $ 100,000 in each fund?
e. What if, in addition to the limitation in part (d), the client wants to invest at least $ 50,000 in the Federated High Income Bond fund?
f. Use parameter analysis to analyze the solution to the base case by varying the risk limitation and return requirement, respectively, and visualize the results.
Step by Step Answer:
Business Analytics Methods Models and Decisions
ISBN: 978-0321997821
2nd edition
Authors: James R. Evans