An investment company currently has 1 million dollars available for investment in five different stocks. The company

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An investment company currently has 1 million dollars available for investment in five different stocks. The company wants to maximize the interest earned over the next year. The five investment possibilities along with the expected interest earned are shown below. To manage risk, the investment firm wishes to have at least 35% of the investment in stocks A and B. Furthermore, no more than 15% of the investment may be in stock E. Model and solve this problem in Excel.
Investment Expected Interest Earned (%)
Stock A 7
Stock B 9
Stock C 8
Stock D 10
Stock E 11
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
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Financial Markets and Institutions

ISBN: 978-0077861667

6th edition

Authors: Anthony Saunders, Marcia Cornett

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