Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Rio Credit Union has $ 2 5 0 , 0 0 0 available to invest in a 1 2 - month commitment and wants
The Rio Credit Union has $ available to invest in a month commitment and wants to invest all of it The money can be placed in Brazilian treasury notes yielding an return or in riskier highyield bonds at an average rate of return of Credit union regulations require diversification to the extent that at least of the investment be placed in Treasury notes. It is also decided that no more than of the investment be placed in bonds.
The aim of the objective function for Rio Credit Union should be to Maximize the objective value.
Decision variables:
$ invested in Treasury notes
$ invested in Bonds
Objective function in decimals, eg NOT :
ROI
Subject to:
$
$
$
On the graph on right, constraints and have been plotted using the line plotting tool.
Using the point drawing tool, plot all the corner points for the feasible area.
In this case, the feasible area lies the line plotted for constraint
The optimal ROI occurs when:
your response a whole number
your response a whole number
Ontimal ROI value prod enter vour response as a whole number
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started