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(2) Citi bank is considering investing in the following options: Interest rates Risk Index The bank has a maximum foreseeable investing capability of $110 million
(2) Citi bank is considering investing in the following options: Interest rates Risk Index The bank has a maximum foreseeable investing capability of $110 million and is further constrained by the following policies: 1. Home Improvement loans must be at least 45% of mortgages issued and no more than 40% of Treasury bills 2. The total amount invested in mutual funds must be at least 16% of all loans(home improvement and personal overdraft) issued 3. Personal overdraft issued must be within +/21% of mortgages 4. Bonds issued must be no more than 15% of the total amount invested 5. The total weighted risk index cannot exceed 72 million 6. The average (per dollar) risk index cannot exceed 0.7
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