Case-Q1: How much should be invested in each? Growth? Income? money market?

Case-Q2: How much would the yield increase?

What change in your Excel model did you make to answer the question above?

Case-Q3: Give new investment recommendation with growth fund yield rate = 16% Growth? Incom? Money Market?

Give new investment recommendation with growth fund yield rate = 14%Growth? Income? Money Market?

Case-Q4:

Give new investment recommendation when the amount in growth fund cannot exceed the amount in the income fund. Growth:Income? Money Market?

What is the new constraint you added to solve the above? You can either write down the algebraic expression (i.e., inequality with variable names) or describe what you did in Excel.

IV Investment Strategy Data LP Model MAX 0.18G + 0.1251 + 0.075M 7.5% 0.01 S.T. Rate of return Risk Total funds Limit on Risk Limits on Growth Limits on Income Money Market Growth Income MM 18.0% 12.5% 0.1 0.07 $ 800,000 0.05 20% to 20% to 30% or higher 40% 50% 1) G + I + M G + M = 160,000 3) G = 160,000 5) I I = 240,000 7) 0.10G + 0.071 +0.01M = 0 Funds Available Min growth fund Max growth fund Min income fund Max income fund Min money market fund Max risk Model Growth Income MM $ Invested Total yield (return) Maximize LHS RHS Slack Funds available Min growth fund Max growth fund Min income fund Max income fund Min money market fund Max risk IV Investment Strategy Data LP Model MAX 0.18G + 0.1251 + 0.075M 7.5% 0.01 S.T. Rate of return Risk Total funds Limit on Risk Limits on Growth Limits on Income Money Market Growth Income MM 18.0% 12.5% 0.1 0.07 $ 800,000 0.05 20% to 20% to 30% or higher 40% 50% 1) G + I + M G + M = 160,000 3) G = 160,000 5) I I = 240,000 7) 0.10G + 0.071 +0.01M = 0 Funds Available Min growth fund Max growth fund Min income fund Max income fund Min money market fund Max risk Model Growth Income MM $ Invested Total yield (return) Maximize LHS RHS Slack Funds available Min growth fund Max growth fund Min income fund Max income fund Min money market fund Max risk