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(a) You have a total of RM4000 and would like to invest in three different investments. A deposit in multiples of RM1000 is required in
(a) You have a total of RM4000 and would like to invest in three different investments. A deposit in multiples of RM1000 is required in these investments. Table Q2(a) shows the expected returns from each investment. Using dynamic programming, determine an optimal policy to maximise your returns. In your solution, you must: 1. Define clearly what the stages, states, recursive formulae and decision variables of your DP model represent. 2. Indicate the applicable states for each stage and show necessary computations for the recursive formulae in obtaining the decision variable. 3. Finally, state the optimal policy for maximal returns. Amount Invested (RM) 0 1000 2000 3000 4000 Return from Investment 1 0 1000 3200 4800 7000 Return from Investment 2 0 1100 3900 5500 6800 Return from Investment 3 0 1500 3500 4500 6000 Table Q2(a) (a) You have a total of RM4000 and would like to invest in three different investments. A deposit in multiples of RM1000 is required in these investments. Table Q2(a) shows the expected returns from each investment. Using dynamic programming, determine an optimal policy to maximise your returns. In your solution, you must: 1. Define clearly what the stages, states, recursive formulae and decision variables of your DP model represent. 2. Indicate the applicable states for each stage and show necessary computations for the recursive formulae in obtaining the decision variable. 3. Finally, state the optimal policy for maximal returns. Amount Invested (RM) 0 1000 2000 3000 4000 Return from Investment 1 0 1000 3200 4800 7000 Return from Investment 2 0 1100 3900 5500 6800 Return from Investment 3 0 1500 3500 4500 6000 Table Q2(a)
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