Knowee
Questions
Features
Study Tools

An investor has Ghc 1,200,000 to investment in either stock fund or money market fund. The investor wishes to attain an annual return of at least Ghc 60,000 and would also want to purchase at least 3000 units of money market funds. A unit of stock fund carries a risk index of 8, and a unit of money market fund carries a risk of 3. Letting S = units purchased in stock fund, and M = units purchased in the money market fund, the following is the formulation of the problem where the investor wishes to minimize total risk involve. Also below is the Answer report from Excel Solver. Using the Answer report, what is the total risk involve in the LP problem? Min 8S + 3M s.t 50S+100M ≤ 1,200,000 (funds available) 5S + 4M ≤ 60,000 (Annual income) M ≥ 3000 (Units in money market) S≥0 and M≥0     A. 92000 B. 62000 C. 2000 D. 90000

Question

An investor has Ghc 1,200,000 to investment in either stock fund or money market fund. The investor wishes to attain an annual return of at least Ghc 60,000 and would also want to purchase at least 3000 units of money market funds. A unit of stock fund carries a risk index of 8, and a unit of money market fund carries a risk of 3. Letting S = units purchased in stock fund, and M = units purchased in the money market fund, the following is the formulation of the problem where the investor wishes to minimize total risk involve. Also below is the Answer report from Excel Solver. Using the Answer report, what is the total risk involve in the LP problem? Min 8S + 3M s.t 50S+100M ≤ 1,200,000 (funds available) 5S + 4M ≤ 60,000 (Annual income) M ≥ 3000 (Units in money market) S≥0 and M≥0     A. 92000 B. 62000 C. 2000 D. 90000

...expand
🧐 Not the exact question you are looking for?Go ask a question

Solution

The total risk involved in the LP problem, as indicated in the Answer report from Excel Solver, is 62,000.

Similar Questions

An investor has $500,000 to spend. Three alternative investments have been identified, earning 15%, 10% and 18%, respectively. A goal has been set to earn average return of 15% on the total investment. In investment alternative 3, the investor invests 30% of the total investment. Determine the amount of money which should be invested in each option to satisfy the requirements of the investor.

Assume that x2, x7 and x8 are the dollars invested in three different common stocks from New York Stock Exchange. In order to diversify the investments, the investing company requires that no more than 70% of the dollars invested can be in "stock 2." The constraint for this requirement can be written as:Group of answer choices.3x2 - .7x7 - .7x8 ≥ 0.x2 ≥ .70 (x2 + x7 + x8).x2 ≥ .70..3x2 - .7x7 - .7x8 ≤ 0.

Janie had just won a prize money worth GHS 100,000 and would like to invest it for a rainy day. In order to reduce the level of risk on her investments, she has been advised to diversify her investments. She has the option of investing in three different assets – Asset 1 which yields an interest of 10% annum, Asset 2 which yields an interest of 12% per annum and Asset 3 which yields an interest of 8% per annum. Due to the high risk nature of Assets 1 and 2, Janie is advised to invest not more than 60% of the total amount of the money in Assets 1 and 2. Janie would want to ensure that she earns returns that will be at exactly 6% of her investment. Formulate the mathematical equations or inequalities that will afford the chance Janie to meet her requirements.

A fund manager must decide how much money to invest in Aurora stock (A) and how much to invest in Parasa stock (P). One requirement is at least 60% of the money invested in the two companies' stock must be in Parasa stock.A correct modelling of this requirement is:Group of answer choices0.4A + 0.6P ≥ 0–0.4A + 0.6P ≥ 00.6A + 0.4P ≥ 0–0.6A + 0.4P ≥ 0

In an Investment arrangement the profit must be shared………………….

1/1

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.