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SOLVER: PORTFOLIO SELECTION: CHOOSE INVESTMENTS SUCH THAT WE MAXIMIZE DOLLARS EARNED WHILE SATISFYING CONSTRAINTS KEY BANK SEEKS TO INVEST $5,000,000 IMMEDIATELY TABLE BELOW GIVES THE
SOLVER: PORTFOLIO SELECTION: CHOOSE INVESTMENTS SUCH THAT WE MAXIMIZE DOLLARS EARNED WHILE SATISFYING CONSTRAINTS KEY BANK SEEKS TO INVEST $5,000,000 IMMEDIATELY TABLE BELOW GIVES THE SPECIFIC INVESTMENTS, DESIRED CONSTRAINTS AND OBJECTIVE: INVESTMENT INTEREST RATE EARNE RISK SCORE EMERGING MARKET BONDS 7.00% 1.70 1.20 INTERMEDIATE CORPORATE E GOLD STOCKS PLATINUM STOCKS 10.00% 19.00% 12.00% 3.70 2.40 MORTGAGE SECURITIES 8.00% 2.00 CONSTRUCTION LOANS 14.00% 2.90 OBJECTIVE: MAXIMIZE DOLLARS OF INTEREST EARNED CONSTRAINTS: 1) INVEST $5,000,000 2) NO MORE THAN 25% OF TOTAL INVESTED IN ANY SINGLE TYPE OF INVESTMENT 3) AT LEAST 30% INVESTED IN PRECIOUS METALS 4) AT LEAST 45 % INVESTED IN EMERGING MARKET BONDS AND CORPORATE BONDS 5) AN AVERAGE RISK SCORE OF
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