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CSUSM Investment Company has collected a total of $3,000,000 from students, staff, and faculty to invest in 10 mutual fund alternatives with the following diversification
CSUSM Investment Company has collected a total of $3,000,000 from students, staff, and faculty to invest in 10 mutual fund alternatives with the following diversification and operational restrictions: - No more than %20 of the total amount should be invested in any one fund. - No investment lower than $80,000 should be made (i.e., if a fund is chosen for investment, then at least $80,000 should be invested in it). - At least one fund should be chosen from each fund type. - No more than two from Growth \& Income funds. - Investment in fund 5 is conditional on investing in fund 10 (you can invest in fund 5 only if fund 10 is chosen for investment). - The total amount invested in pure bond funds must be at least 50% of the amount invested in Growth funds. Using the following expected returns, formulate and solve a model that will determine the investment strategy that will maximize expected annual return. What assumptions have you made in your model? How often would you expect to run your model
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