Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stay A business student has $1500 available from a summer job and has identified three potential stocks in which to invest. To find an optimal

Stay

image text in transcribed
A business student has $1500 available from a summer job and has identified three potential stocks in which to invest. To find an optimal solution to maximize, the Excel add-in Solver was used. The accompanying figure shows the Solver Sensitivity Report. Using only the information in the Sensitivity Report, complete parts a through c. i Click the icon to view the Solver Sensitivity Report. a. How much would the return on stock B have to increase in order for the optimal solution to invest full in that stock? It would need to increase by at least $ 3 per share, which is the negative of the reduced cost. Type an integer or a decimal. Do not round.) b. How much would the return on stock C have to increase in order to fully invest in that stock? It would need to increase by at least $ per share, which is the of the (Type an integer or a decimal. Do not round.) X Solver Sensitivity Report A B C D E F G 6 Variable Cells 7 Final Reduced Objective Allowable 8 Cell Name Value Cost Coefficient Increase 9 $B$5 Shares Purchased A 216.5555555 0 9 1E + 10 $C$5 Shares Purchased B 0 - 3 11 $D$5 Shares Purchased C 0 - 7 12 12 13 Constraints 14 Final Shadow Constraint Allowable 15 Cell Name Value Price R.H. Side Increase 16 $A$16 Capacity Used 1500 0.666666667 1500 1E + Print Done

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

Introduction To Probability Models

Authors: Sheldon M Ross

10th Edition

0123756863, 9780123756862

More Books

Students also viewed these Mathematics questions