Question
complete all constraints explained in the qualis investments problem and use them in a linear optimization model aimed to minimize the investment risks. Given the
complete all constraints explained in the qualis investments problem and use them in a linear optimization model aimed to minimize the investment risks. Given the risk is minimized, what is the return on investment (in dollars)? Enter the number here( No comma or other formatting characters)
The company recommends that no more than $300,000 be invested in any individual fund and that at least $80,000 be invested in each of the mid-cap stock and mortgage fund. The total amount invested in the low-priced and multinational funds are at least 35% of the total investment. The client would like an average return of at least 6%. Assume that X1 - X6 represent the dollar amounts invested in funds 1 through 6, respectively.
I am stuck on figuring out the dollar amount for each fund and how that is found.
Below is what I have in Excel already
A | b | c | d | e | f | |
3 | Data | |||||
4 | Expected | |||||
5 | Fund | Return | Risk Measure | Maximum | Minimum | |
6 | 1 | Low Priced Stock | 0.0723 | 11.87 | 300000 | |
7 | 2 | Multinational | 0.0842 | 12.62 | 300000 | |
8 | 3 | Mid Cap | 0.0666 | 13.72 | 300000 | 80000 |
9 | 4 | Mortgage | 0.0272 | 3.37 | 300000 | 80000 |
10 | 5 | Income Equity | 0.0889 | 8.4 | 300000 | |
11 | 6 | Balanced | 0.035 | 6.91 | 300000 | |
12 | ||||||
13 | Investment = | 750000 | ||||
14 | Target return | 0.06 | ||||
15 | Low Priced + Multinational | =0.35*C13 |
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