Question
A recent MBA graduate, Dara, has gained control over custodial accounts that her parents had established for her. Currently, her money is invested in four
A recent MBA graduate, Dara, has gained control over custodial accounts that her parents had established for her. Currently, her money is invested in four funds, but she has identified several other funds as options for investment. She has $99,800 to invest with certain restrictions. A linear optimization model to maximize the net return was created and the Solver Sensitivity Report of the model is provided. Use the Solver Sensitivity Report to make recommendations that Dara might consider for her portfolio.
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Dara's Investments Sensitivity Report Variable Cells Constraints Interpret the value of the Shadow Price for Total Amount Invested. Select the correct choice below and fill in the answer box to complete your choice. (Type integers or decimals rounded to the nearest cent as needed.) A. Dara should invest up to $ more because the return will increase by for each additional $1000 invested. B. Dara should decrease the total amount invested by up to $ because the return will decrease by $ for each $1000 invested. Interpret the value of the Shadow Price for Current Holdings Amount Invested. Select the correct choice below and fill in the answer box to complete your choice. (Type integers or decimals rounded to the nearest cent as needed.) Dara's Investments Sensitivity Report Variable Cells Constraints Interpret the value of the Shadow Price for Total Amount Invested. Select the correct choice below and fill in the answer box to complete your choice. (Type integers or decimals rounded to the nearest cent as needed.) A. Dara should invest up to $ more because the return will increase by for each additional $1000 invested. B. Dara should decrease the total amount invested by up to $ because the return will decrease by $ for each $1000 invested. Interpret the value of the Shadow Price for Current Holdings Amount Invested. Select the correct choice below and fill in the answer box to complete your choice. (Type integers or decimals rounded to the nearest cent as needed.)Step by Step Solution
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