Question: Problem 2. Consider the following portfolio mix problem: Maximize: .20 X1 +.10 X2 +.06 X3 Subject to: 10 X1 +.05 X2 +.01 X3 30,000 X2

Problem 2. Consider the following portfolio mix

Problem 2. Consider the following portfolio mix problem: Maximize: .20 X1 +.10 X2 +.06 X3 Subject to: 10 X1 +.05 X2 +.01 X3 30,000 X2 > 30,000 X3 > 60,000 X1 + X2 + X3 300,000 X1, X2, X3 20 C. Using EXCEL, generate the information needed and answer the following questions: a. What is the optimal solution? b. What is the value of the objective function? Which constraints are the binding constraints? d. How much slack is available in the nonbinding constraints? e. What are the shadow prices associated with the five constraints? f. Which right-hand-side value would have the greatest effect on the value of the objective function if it could be changed? g. Develop the appropriate ranges for the coefficients of the objective function. What is your interpretation of these ranges? h. Develop and interpret the ranges of feasibility for the right-hand-side values

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