options

return

$10$ highest

$1$ Stocks

$12\%$

$10$

$2$ Mutual funds

$8\mathrm{.}5\%$

$6$

$3$

Bonds

$3\mathrm{.}5\%$

$2$

$4$

Gold

$4\%$

$3$

To maximize such portfolio, we would create an objective function, with $4$ variables $..$ Let S be stocks; M be mutual funds; B for bonds, G for gold.

Cindy has $$4$ million to invest, but wishes to keep some $5\%$ in cash $($liquidity$),$ in the event that the market is down, and she does not want to sell any of her investment to pay her expenses.

Bonds should be at least $\frac{1}{3}$ in her portfolio

Gold should be at least $5\%$ in her portfolio

Average risk factor for her portfolio should NOT exceed $6$

Her good friend, Tommy devised a linear Programmins $($LP$)$ Model, in accordance with her constraints. Model suggested a return of $$300\mathrm{.}432\mathrm{.}50$ a year, a $7\mathrm{.}91\%$ return. The portfolio resembles a 'Growth and Income' Model, consisted of about $62\%$ equity, $38\%$ bonds and gold.

However, with the recent vaccine rollout, and oxpecting a Recovery Phase to take place in $2021,$ Cindy now wishes to run another LP Model.

She now likes to keep a cash position of $$300,000$ fout of her $$4$ million, only to invest $$3\mathrm{.}7$ million$),$ enough for $2$ years for her living expenses, without cashing in from her portfolio. She now wants at least $$1$ million in bonds $($vs$.\frac{1}{3}$ of her portfolio last time$),$ and NO gold position. Her risk appetite level has now changed to $\text{'}7\text{'},$ and not her previlous $"6"$:

What is her new optimal return $($maximize

$[$Select$]$

What $\%$ annual return in her portfolio? $[$Select$]$

What is the $\%$ in bonds in the portfolio? $$

Dollars invested in mutual funds? $[$Select$]$

What is the $\%$ in mutual funds in the portfolio

$[$Select$]$

Dollars invested in stocks? $[$Select$]$

Error Analysis in Forecasting

Last four weekly sales of Soup City were $80,100,105,$ and $90$ units, respectively. The

last four forecasts from Demand Planner, Vinny $($for the same four weeks$)$ were $60,$

$80,95,$ and $75$ units, respectively.

Calculate the MAD

Calculate the MSE

Calculate the MAP

Those $4$ forecasts from Tommy, after purchased a new forecast software $($for the

same four weeks$)$ were $63,78,91,$ and $69$ units, respectively.

Calculate the MAD

Calculate the MSE

Calculate the MAPE

Who has a better forecast

Did the purchased software produce a better forecast