You have the opportunity to invest in three projects. The investment opportunities have the following characteristics: A:
Question:
You have the opportunity to invest in three projects. The investment opportunities have the following characteristics:
A: For each dollar invested today in this opportunity yields S0.2 in one month and $1.10 in two months.
B: For each dollar invested in a month from today, yields $0.3 in two months (from today) and $1.5 in three months.
C: For each dollar invested today, yields $1.9 in three months from today.
At any time, leftover cash can be invested in a savings bond, which yields 8% per month. You have $500 available now to invest.
Formulate an LP to maximize your cash at the end of month 3.
CORRECTIONS:
In investment A yields $0.2 in one month
At any time, leftover cash can be invested in a savings bond which yields 7% per month.
Applied Equity Analysis and Portfolio Management Tools to Analyze and Manage Your Stock Portfolio
ISBN: 978-1118630914
1st edition
Authors: Robert A.Weigand