A trust officer at Pond Island Bank needs to determine what percentage of the bank's investable funds to place in each of following investments.

Investment Yield Maturity Risk

A $9\mathrm{.}5\%8\mathrm{.}02\mathrm{.}0$

B $11\mathrm{.}0\%7\mathrm{.}06\mathrm{.}0$

C $9\mathrm{.}0\%2\mathrm{.}03\mathrm{.}0$

D $10\mathrm{.}0\%3\mathrm{.}04\mathrm{.}0$

F $12\mathrm{.}0\%9\mathrm{.}06\mathrm{.}0$

The Yield column represents each investment's annual yield. The Maturity column indicates the number of years funds must be placed in each investment. The Risk column indicates an independent financial analyst's assessment of each investment's risk. In general, the trust officer wants to maximize the weighted average yield on the funds placed in these investments while minimizing the weighted average maturity and the weighted average risk.

$($a$)$

Formulate an MOLP model for this problem and implement your model in a spreadsheet. $($Let PA$,$ PB$,$ PC$,$ PD$,$ and PF be the proportions invested in Investments A$,$ B$,$ C$,$ D$,$ and F respectively.$)$

Yield $($as a percentage$)$ MAX:

Correct: Your answer is correct.

Maturity MIN:

Correct: Your answer is correct.

Risk MIN:

Correct: Your answer is correct.

Subject to:

Sum of

PA$,$ PB$,$ PC$,$ PD$,$ PF

Correct: Your answer is correct.

PA$,$ PB$,$ PC$,$ PD$,$ PF $>=0$

$($b$)$

Determine the best possible value for each objective in the problem.

What is the maximum possible yield, as a percent, on the funds placed into these investments.

$12$

Correct: Your answer is correct.

$\%$

What is the minimum possible maturity on the funds placed into these investments.

$2$

Correct: Your answer is correct.

What is the minimum possible risk on the funds placed into these investments.

$2$

Correct: Your answer is correct.

$($c$)$

Determine the solution that minimizes the maximum percentage deviation from the optimal objective function values. What solution do you obtain? $($Round your answers to four decimal places.$)$

$($PA$,$ PB$,$ PC$,$ PD$,$ PE$)=$

Correct: Your answer is correct.

$($d$)$

Suppose management considers minimizing the average maturity to be twice as important as minimizing average risk, and maximizing average yield to be twice as important as minimizing average maturity. What solution does this suggest? $($Round your answers to four decimal places.$)$

$($PA$,$ PB$,$ PC$,$ PD$,$ PE$)=$