Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Show in Excel Question 4: The sensitivity report for the investment problem in question 3 is in the worksheet named Investment 2 . Use the

Show in Excel

Question 4:

The sensitivity report for the investment problem in question 3 is in the worksheet named Investment 2. Use the report to answer the following questions.

2 Points: In cell J6, input the word yes or no to indicate if a greater return on RE could change the optimal solution.

2 Points: In cell J7, input the word yes or no to indicate if a return on CD of 7% would change the optimal solution.

2 Points: In cell J8, input the value that represents the maximum amount the return on MF (in percent terms) could increase without changing the optimal solution.

2 Points: In cell J9, input the value that represents the maximum decrease in return on Bonds (in percent terms) that would result in the optimal solution remaining unchanged.

2 Points: The requirement that at least $250 be allocated to each investment serves as a set of constraints.In cell J21, enter either the word(s) Slack,, Surplus, Shadow Price, Reduced Value, or Amount Used to indicate the difference between the minimum required investment of $250 and the actual amount allocated to each investment.

Question 4
Adjustable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease Part Grader
$B$6 Dec Vars X1 RE 4750 0 0.08 1E+30 0.02 a
$C$6 Dec Vars X2 CD 250 0 0.04 0.04 1E+30 b
$D$6 Dec Vars X3 MF 3000 0 0.06 0.01 1E+30 c
$E$6 Dec Vars X4 Bonds 2000 0 0.07 1E+30 0.01 d
Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$G$12 RE to CD Ratio Amount Used 4,250 0 0 4250 1E+30
$G$13 MF + Bonds Combined Amount Used 5,000 0 5000 4250 2750
$G$15 RE Alone Amount Used 4,750 0 250 4500 1E+30
$G$16 CD Alone Amount Used 250 0 250 1416.666667 250
$G$17 MF Alone Amount Used 3,000 0 250 2750 1E+30
$G$18 B Alone Amount Used 2,000 0 250 1750 1E+30
$G$14 Bonds <=$2000 Amount Used 2,000 0 2000 2750 1750 Part Grader
$G$19 All Funds Invested Amount Used 10,000 0 10000 1E+30 4250 e

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

DeFi And The Future Of Finance

Authors: Campbell R. Harvey, Ashwin Ramachandran, Joey Santoro, Vitalik Buterin, Fred Ehrsam

1st Edition

1119836018, 978-1119836018

More Books

Students also viewed these Finance questions

Question

identify current issues relating to equal pay in organisations

Answered: 1 week ago