Question: Quantitive anlysis from business class ! Me More X Max Max Mare News a Courses Art 4. (10 marks) Mr Smith, an officer, has received

Quantitive anlysis from business class !

Me More X Max Max Mare News a Courses Art 4. (10 marks) Mr Smith, an officer, has received his retirement benefits like PF and gratuity, etc. He is contemplating as to how much funds he should invest in various alternatives open to him so as to maximize return on investment. The investment alternatives are: 1) government securities, 2) company fixed deposits, 3) Equity shares, 4) bank deposits. 5) National Saving certificates and 6) Real estate. He has made a subjective estimate of the risk involved on a five-point scale. The data on the return on investment the number of years for which the funds will be blocked to earn this return on investment and the subjective risk involved are as follows: Investment Return on Number Risk Alternatives Investmentof Years (%) Government 6 15 11 securities Company fixed 115 3 3 deposits Equity shares 6 7 Bank deposits 10 3 National Saving 12 6 Certificates Real Estate 25 10 20 ars. He He was wondering what percentage of funds he should invest in each alternative so as to maximize the return on investment He decided that the average risk should not be more than 4, and funds should not be locked up for more than 15 would necessarily invest at least 30% in real estate. Formulate the problem as linear programming

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