Question: Please help is tailored to each client's needs. For a new client. Innis has been authorized to invest up to $1.2 million in two investment

Please help Please help is tailored to each client's needs.
Please help is tailored to each client's needs.
is tailored to each client's needs. For a new client. Innis has been authorized to invest up to $1.2 million in two investment funds: a stock fund and a money market fund Each unit of the stock fund costs $30 and Innis Investments manages funds for a number of companies and wealthy clients. The investment strategy provides an annual rate of retum of 10% cach unit of the money market fund costs S100 and provides an annual rate of return of 4% The client wants to minimize risk subject to the requirement that the annual income from the investment be at least $60,000. According to Innis' risk measurement system, cach unit invested in the stock fund has a risk index of 8, and cach unit invested in the money market fund has a risk index of 3. the higher risk also specified that at least $300,000 be invested in the money market fund Let S -units purchased in the stock fund Munits purchased in the money market fund Min S.L 8S + 3M 50S 5S + 100M + 4M M S, M 1.200,000 60,000 3,000 0 The computer solution is as follows Optimal objective Value Variable 62000.00000 Value Reduced cost 5 N 4000.00000 10000.00000 Constraint 0.00000 0.00000 Dual value Black/Surplus 1 0.00000 0.00000 9000.00000 objective Allowable Cootticient Increase -0.05667 2.16667 0.00000 Variable Allowable Decrease N 0.00000 3.00000 4.25000 Infinite Infinite 3.40000 Allowable Increase Constraint RIS Value Allowable Decrease 1200000.00000 60000.00000 3000.00000 30000000000 43000.00000 7000.00000 420000.00000 13000.00000 Infinite a) What is the optimal solution, and what is the minimum total risk? b) Specify the objective coefficient ranges. c) How much annual income will be carned by the portfolio? d) What is the rate of return for the portfolio? e) What is the dual value for the funds available constraint? 1 What is the marginal rate of return on extra funds added to the portfolio? 8) Suppose the risk index for the stock fund (the value of increases from its current value of 8 to h) Suppose the risk index for the money market fund (the value of ) increases from its current value D) Suppose increases to 12 and increases to 3 5 How does the antimal enlution change if at all

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