Hi, this is a student from MIS class. I did not know the right answer for this following question, what supposed be the right answer for this ? What should be the constraints look like in the Excel Sover?
Thanks for any help!
3. We wish to optimize our investment portfolio, subject to certain constraints. Our initial capital available is provided in B1 (Capital. The annual income required is provided in B2 Requiredlncome). Please provide the information for the Solver parameters "Set Objective" "By Changing Variable Cells", and "Subject to the Constraints" boxes. Your objective is to maximize the Final Portfolio Value of your portfolio by changing the Number of Shares purchased in each company, subject to the following constraints: 1) your Total Amount Invested cannot excced the Initial Capital amount indicated on the Budget sheet, 2) you will need a Total Annual Income in the amount specified as Required Annual Income on the Budget sheet; 3) Stock purchases should be non-negative integers. 1Initial Capita 2 Requred Annual Income 3 Investment Perod S 175 000.00 Amount available for investment 2500.00 Minmum arnual income needed to cover investment expenses 10 Duration for which stocks are to be held 8 00% Projected vmal appreciation rate 10 12 14 Amount Invest 16 Total 1,500 800 1,200 845 00 Set Ogetive 3. We wish to optimize our investment portfolio, subject to certain constraints. Our initial capital available is provided in B1 (Capital. The annual income required is provided in B2 Requiredlncome). Please provide the information for the Solver parameters "Set Objective" "By Changing Variable Cells", and "Subject to the Constraints" boxes. Your objective is to maximize the Final Portfolio Value of your portfolio by changing the Number of Shares purchased in each company, subject to the following constraints: 1) your Total Amount Invested cannot excced the Initial Capital amount indicated on the Budget sheet, 2) you will need a Total Annual Income in the amount specified as Required Annual Income on the Budget sheet; 3) Stock purchases should be non-negative integers. 1Initial Capita 2 Requred Annual Income 3 Investment Perod S 175 000.00 Amount available for investment 2500.00 Minmum arnual income needed to cover investment expenses 10 Duration for which stocks are to be held 8 00% Projected vmal appreciation rate 10 12 14 Amount Invest 16 Total 1,500 800 1,200 845 00 Set Ogetive