Question: FIGURE 8.15 SENSITIVITY REPORT FOR THE INVESTMENT ADVISORS PROBLEM Variable Cells Model Variable U H Name U.S. Oil Huber Final Value 800.000 1200.000 Reduced Cost

FIGURE 8.15 SENSITIVITY REPORT FOR THE INVESTMENT
FIGURE 8.15 SENSITIVITY REPORT FOR THE INVESTMENT
FIGURE 8.15 SENSITIVITY REPORT FOR THE INVESTMENT ADVISORS PROBLEM Variable Cells Model Variable U H Name U.S. Oil Huber Final Value 800.000 1200.000 Reduced Cost 0.000 0.000 Objective Coefficient 3.000 5.000 Allowable Increase 7.000 1.000 Allowable Decrease 0.500 3.500 Constraints Constraint Number Name Funds available Risk maximum U.S. Oil maximum Final Value 80000.000 700.000 800.000 Shadow Price 0.093 1.333 0.000 Constraint R.H. Side 80000.000 700.000 1000.000 Allowable Increase 60000.000 75.000 IE+30 Allowable Decrease 15000.000 300.000 200.000 2 3 a. 8. Refer to Figure 8.15, which shows the sensitivity report for Problem 7. How much would the return for U.S. Oil have to increase before it would be beneficial to increase the investment in this stock? b. How much would the return for Huber Steel have to decrease before it would be ben- eficial to reduce the investment in this stock? c. How much would the total annual return be reduced if the U.S. Oil maximum were reduced to 900 shares

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