Question: For Daras investment situation (Problem 32 in Chapter 13), obtain the Solver Sensitivity Report and interpret the information, making recommendations that Dara might consider for

For Dara’s investment situation (Problem 32 in Chapter 13), obtain the Solver Sensitivity Report and interpret the information, making recommendations that Dara might consider for her portfolio.

Data from Problem 32 in chapter 13

A recent MBA graduate, Dara, has gained control over custodial accounts that her parents had established for her. Currently, her money is invested in four funds, but she has identified several other funds as options for investment as shown in the table, Data for Problem 32. She has $100,000 to invest with the following restrictions:

■ Keep at least $5,000 in savings.

■ Invest at least 14% in the money market fund.

■ Invest at least 16% in international funds.

■ Keep 35% of funds in current holdings.

■ Do not allocate more than 20% of funds to any one investment except for the money market and savings account.

■ Allocate at least 30% into new investments.

Develop a linear optimization model to maximize the net return

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Average Return Expenses Net Return 1 Large cap blend 1720 093 1627 current holding 2 Small cap growth 2040 056 1984 current holding 3 Green fund 2630 ... View full answer

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