Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ian is looking to invest up to 40000$ in 5 different investment opportunities. Data on is given below. he wants to make sure that the

ian is looking to invest up to 40000$ in 5 different investment opportunities. Data on is given below. he wants to make sure that the fraction invested in industrial opportunities is no more than 0.6, and that the weighted average ( with the amount invested as the weights) maturity of the investment is no more than 14 years. assume money can not be invested in the same opportunity twice. formulate the problem of determining how much to invest in each opportunity in order to maximize the total return from all the investments subject to the constraints stated above. also, formulate the problem of detemining how much to invest in each opportunity in order to maximize the average annual return.

opportunities annual return maturity
A: government bonds 6% 10years
B: government bonds 5% 5years
C: prefered shares(industry) 7% 20years
D: Bonds(industry) 4% 6years
E: CDs 5.5% 7years

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting The Basis For Business Decisions

Authors: Robert F. Meigs, Walter B Meigs

5th Edition

007041551X, 9780070415515

More Books

Students also viewed these Accounting questions

Question

gpt 1 0 9 9 . .

Answered: 1 week ago

Question

Define induction and what are its objectives ?

Answered: 1 week ago

Question

Discuss the techniques of job analysis.

Answered: 1 week ago

Question

How do we do subnetting in IPv6?Explain with a suitable example.

Answered: 1 week ago

Question

Explain the guideline for job description.

Answered: 1 week ago

Question

What is job description ? State the uses of job description.

Answered: 1 week ago