Question: in excel using the solver parameters please 1.8 2.4 2 1.4 STOCK VAN -0.013 0.151 1.2 STOCK FID -0.042 VAN ABC TRP MUTUAL FUN MODELING!!
in excel using the solver parameters please
1.8 2.4 2 1.4 STOCK VAN -0.013 0.151 1.2 STOCK FID -0.042 VAN ABC TRP MUTUAL "FUN" MODELING!! - The table below depicts the attributes of 9 mutual funds that you have chosen for investment of your client's money. She has $100,000 to invest, though you do not have to invest it all (Warren Buffet doesn't tie up all of his money either!). Attributes: 1) A Measure of the riskiness of the fund (low is better than high). 2) Investment Category Type (STOCK, BALanced), INTL, BOND) 3) Investment Company (VAN, ABC, FID, JPM, TRP) 4) RET1 - anticipated annual return under market conditions "COVID Recovery 1" 5) RET2 - anticipated annual return under market conditions "COVID Recovery 2" 6) RET3 - anticipated annual return under market conditions "COVID Recovery 3". 7) Green - a measure of how green the companies in which the fund invests 8) Social - a measure of how the funds are invested in socially conscious companies. Risk Measure 2.2 1.7 3.1 1.8 Type BAL BOND BAL BOND INTL STOCK Company ABC JPM RETI -0.036 0.063 0.046 0.071 -0.044 RET2 0.123 0.203 0.122 0.106 0.137 0.188 RET3 0.04 0.053 -0.04 -0.052 -0.033 -0.022 0.051 Green 3 7.5 6 Social 3 44 3.2 5 5 Invest the funds optimally (minimizing risk - amount invested in a fund times the risk measure) such that: a) Under market conditions RETI and RET3, the model provides a zero or positive return. b) Under market conditions RET2, there is a return of at least $12,750. (This is a number). c) At least 7.5% of the invested funds must be with each company. d) No more than 40% of the funds invested can be with any one company. e) No more than 32% of the funds invested can be with any one investment category. f) The invested funds must average at least 5.0 on the green measure. 2) The invested funds must average at least 4.75 on the social measure. h) Investments must be in integer dollars. Create and solve an LP model that addresses this investment situation. Keep in mind we do not know in advance how much the model will decide to invest - it will be between $0 and $100,000. Only the model knows. INTL JPM 0.071 0.117 FID -0.021 0.212 0.069 4 5 0.02 6 4.2 4 6.5 4.4 7.1 5.2 6.1Step by Step Solution
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