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An investment banker is looking to determine the best investment for strategy for him client. He is deciding how much to invest in investments I
An investment banker is looking to determine the best investment for strategy for him client. He is deciding how much to invest in investments I and B subject to the risk the client is willing to accept. Using the output of the sensitivity analysis from the optimization model, when is the shadow prices of o.025 valid for the Investment constraint? 1 Microsoft Excel 15.0 Sensitivity Report 2 Worksheet: [Office_Hours_Module5.xlsx]Problem 1 3 Report Created: 10/15/2017 8:14:44 PM 6 Variable Cells Final Reduced Objective Allowable Allowable Value Cost Coefficient Increase Decrease 8 Cell 9 $B$5 Decision VariablesI 26.25 10 $C$5 Decision Variables B 38.75 Name 0.2 0.033333333 0.1 0.1 0.014285714 0.1 12 Constraints 13 14 Cell 15 SES8 Investment 16 SE$9 Internet 17 SE$10 Risk Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase Decrease 65 30 Name 65 0.025 26.25 35 1E+30 15 3.75 105 300 0.025 When the right hand side of the constraint is equal to 65 When the right hand side of the constraint is between 60 and 100 When the right hand side of the constraint is between 65 and 100 When the right hand side of the constraint is more than 65
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