Question: Please answer in excel. Thanks! #20 - Create a spreadsheet model to answer the following: A bank has $650,000 in assets to allocate among investments

 Please answer in excel. Thanks! #20 - Create a spreadsheet model
Please answer in excel. Thanks!

#20 - Create a spreadsheet model to answer the following: A bank has $650,000 in assets to allocate among investments in bonds, home mortgages, car loans and personal loans. Bonds are expected to produce a return of 10%, mortgages 8.5%, car loans 9.5%, and personal loans 12.5%. To make sure the portfolio is not too risky, the bank wants to restrict personal loans to no more than 25% of the total portfolio. The bank also wants to ensure that more money is invested in mortgages than personal loans. Further, the bank also wants to invest in more bonds than personal loans. What is the optimal amount to invest in each investment

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!