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HW 8 ( CH 1 2 ) - Linear optimization risk - free securities to stabilize income. The various revenue - producing investments together with
HWCH Linear optimization
riskfree securities to stabilize income. The various revenueproducing investments together with annual rates of return are as follows:
investments:
Riskfree securities may not exceed of the total funds available for investment.
Signature loans may not exceed of the funds invested in all loans automobile furniture, other secured, and signature loans
Furniture loans plus other secured loans may not exceed the automobile loans.
Other secured loans plus signature loans may not exceed the funds invested in riskfree securities
How should the $ million be allocated to each of the loaninvestment alternatives to maximize total annual return?
What is the projected total annual return?
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