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Question 1. Investor Group specialized in recommending long-term financial portfolios for wealthy clients. One such client wishes to invest $750,000 in the following bonds The
Question 1. Investor Group specialized in recommending long-term financial portfolios for wealthy clients. One such client wishes to invest $750,000 in the following bonds
The client has made the following specifications: 1) At least 50% should be invested in long-term bonds (maturing in 10+ years). 2) No more than 35% can be invested in DynaStar, Eagle Vision, and OptiPro. a) Formulate a LP model to maximize the annual return. b) Solve the model with the Excel Solver and attach your solution from Excel
Annul Years to Maturity Company Return Rating Acme chemical 8.65% 11 1-Excellent DynaStar 9.50% 3-Good 10 Eagle Vision 10.00% 6 4-Fair 1-Excellent Micro Modeling 8.75% 10 OptiPro 9.25% 7 3-Good Sabre Systems 9.00% 13 2-Very Good Annul Years to Maturity Company Return Rating Acme chemical 8.65% 11 1-Excellent DynaStar 9.50% 3-Good 10 Eagle Vision 10.00% 6 4-Fair 1-Excellent Micro Modeling 8.75% 10 OptiPro 9.25% 7 3-Good Sabre Systems 9.00% 13 2-Very GoodStep by Step Solution
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