An investor wants to invest up to $100,000 as follows:

X amount into a Certificate of Deposit (CD) that yields an expected annual return of 1% with a risk index of 1,
Y amount into a Bond with an expected annual return of 3% and a risk index of 4,
Z amount into a Stock with an expected annual return of 7% and a risk index of 8.
The investor’s objective is to maximize the total expected annual return of the investment.

However, to be prudent, the investor requires that:
The fraction of the total investment in X must be at least 20%.
The fraction of the total investment in Z must not exceed 50%.
The combined portfolio risk index must not exceed 5.

Required:
a. Set up this investment problem as a linear program, which has 3 variables, 3 basic constraints, and 4 special constraints.
b. Use an LP software to find the maximum expected annual return in dollars and the dollar values of X, Y, and Z for this best investment.
c. From the software solution, show the values of the dual variables for the four special constraints.

Answers

Answer 1

Answer:

a-The Linear Model is as follows:

[tex]X+Y+Z\leq 100,000\\{0.001X}\geq 20\\{0.001Z}\leq 50\\0.00001X+0.00004Y+0.00008Z\leq5\\X\geq0\\Y\geq0\\Z\geq0[/tex]

b-The values are

X=$33,333.33

Y=$16,666.67

Z=$50,000.00

Leading to a total expected return of $4333.33.

c-The values of constraints are as follows

X+Y+Z=33333.33+16666.67+50000=100,000

X=33%, Y is 16.67% and Z is 50%

Risk component of X is 0.33

Risk component of Y is 0.66

Risk component of Z is 4.00

Step-by-step explanation:

a

From the conditions, the first special constraint is the total amount which is that the sum of investments must not be  more than the total available amount of $100,000 so

[tex]X+Y+Z\leq 100,000[/tex]

The second special constraint is that the percentage of X must be at least 20% So

[tex]\dfrac{X}{100,000}\times100 \geq20\\\dfrac{X}{1000} \geq20\\{0.001X}\geq 20[/tex]

The third special constraint is that the fraction of total investment of Z must not exceed 50% So

[tex]\dfrac{Z}{100,000}\times100 \leq50\\\dfrac{Z}{1000}\leq 50\\0.001Z\leq50[/tex]

The fourth special constraint is that the combined portfolio risk index must not exceed 5 so

[tex]\dfrac{X}{100,000}\times1+\dfrac{Y}{100,000}\times4+\dfrac{Z}{100,000}\times8\leq5\\0.00001X+0.00004X+0.00008Z\leq5[/tex]

As the investments cannot be negative so three basic constraints are

[tex]X\geq0\\Y\geq0\\Z\geq0[/tex]

The maximization function is given as

[tex]f(X,Y,Z)=\dfrac{X}{X+Y+Z}\times1\%+\dfrac{Y}{X+Y+Z}\times3\%+\dfrac{Z}{X+Y+Z}\times7\%\\f(X,Y,Z)=\dfrac{X}{X+Y+Z}\times0.01+\dfrac{Y}{X+Y+Z}\times0.03+\dfrac{Z}{X+Y+Z}\times0.07[/tex]

b

By using an LP solver with BigM method the solution is as follows:

X=$33,333.33

Y=$16,666.67

Z=$50,000.00

Leading to a total expected return of $4333.33.

c

The values of constraints are as follows

X+Y+Z=33333.33+16666.67+50000=100,000

X=33%, Y is 16.67% and Z is 50%

Risk component of X is 0.33

Risk component of Y is 0.66

Risk component of Z is 4.00


Related Questions

Identify the correct statement for the given figure.
Question 14 options:

A)

(5x)° + (2x + 7)° = 90°

B)

90° + (2x + 7)° = (5x)°

C)

(5x)° + (2x + 7)° = 180°

D)

(5x)° = (2x + 7)°

Answers

Answer:

A. 5x° + (2x + 7)° = 90°

Step-by-step explanation:

Complementary angles add up to give us 90°.

From the given diagram, we have a part of the angles on a straight line as a right angle. Which means it is 90°. Therefore, the other two angles, 5x° and (2x + 7)° will add up to give us 90°. Thus, 5x° and (2x + 7)° are complementary angles.

Therefore:

5x° + (2x + 7)° = 90°

Solve for the letter t

Answers

t=34.34

explanation: solve for t by simplifying both sides of the equation, then isolating the variables.

How’s many solutions does the graph have and what are they?

Answers

Answer:

The graph has 2 solutions

Step-by-step explanation:

they are -5 & 3

Answer the question Please, I am not sure of what it is.

Answers

Answer:

total area = 14.6 units²

Step-by-step explanation:

rectangle = 3 x 5 = 15

cos 30 = height/3

triangle height = 2.6

triangle = 1/2(3)(2.6) = 3.9

semi circle = (3.14)(1.5²)(.5) = 3.53

total area = 15 + 3.53 - 3.9 = 14.63

There is a group of 8 people ordering pizza. If each person
gets 3 slices and each pizza has 5 slices, how many pizzas
should they order?

Answers

Answer:

5 pizzas

Step-by-step explanation:

8people times 3slices = 24 slices needed

24slices/ 5 pizzas per box= 4.8   you cant buy 4.8 boxes of pizza, so you round it to 5 boxes.

helppppppppppppppppppppppppppppp

Answers

Don’t fall for those fake links love!

A student solved for the radius of a circle with a circumference of 120 In which step did the student make an error?

Step 24. ZT
Step 1: C = 21
Step 2: 1271 = 2
Step 3: 12т - 2те ZT
Step 4: 6 = Tr Step 5: /
Step 6: Solving for r, the length of the radius Solving for r, the length of the radius should be cm. Tr TE 4 is crm.

In which step did the student make an error??
Step:___

Solving for r, the length of the radius should be___cm.

Answers

Answer:

r = 6 cm

Step-by-step explanation:

C = 2πr

12π = 2πr

12π/2π = 2πr/2π

(The mistake is in the next step when calculating the division.

12π/2π = 6, same way 2πr/2π = r and NOT πr)

6 = r

r = 6 cm

Answer:

In which step did the student make an error?

Step

✔ 4

.

Solving for r, the length of the radius should be

✔ 6

cm.

Step-by-step explanation:

Pazonian packing up a little

Answers

Answer:

a little strap

Step-by-step explanation:

Answer:

Yes

Step-by-step explanation:

What is the volume of a hemisphere with a radius of 3.6 cm, rounded to the nearest tenth of a cubic centimeter?

Answers

Answer:

97.7

Step-by-step explanation:

Given h(x) = -X – 2, solve for x when h(x) = 3.

Answers

the answer should be h(3)= -5

Answer:

x = -5

Step-by-step explanation:

One is given a function and the value of the function at a certain output. One must set the function to the given output, and solve to find the input,

h(x) = - x - 2

h(x) = 3

Set the output equal to the input,

h(x) = - x - 2 = 3

Inverse operations,

- x - 2 = 3

    +2    +2

- x = 5

*-1   *-1

x = -5

Assume a student shows up for EGR 280 completely unprepared and the instructor gives a pop quiz. Assume there are 6 questions, every single question is multiple choice question. Assume that each question has five options (a, b, c, d, and e), the student selects the answer randomly. Also assume that whether one question is answered correctly is independent of whether or not another question is answered correctly.

Required:
For a single question, what it the probability (p) that the student answers correctly?

Answers

Answer:

P=20%

Step-by-step explanation:

Let's suppose that each question in the test has one and only one correct answer. This means we have 1 desired outcome out of the total 5 desired outcomes. Therefore:

Probability=#of desired outcomes / #of possible outcomes

or

[tex]P=\frac{1 correct}{5 opctions}[/tex]

[tex]P=\frac{1}{5}[/tex]

P=0.20

P=20%


Solve for x

5 - 9x = -76​

Answers

Answer:

9

Step-by-step explanation:

Subtract 5 from each side and get -9x = -81.

Divide by -9.

The answer is 9.

Answer:

x=9

Step-by-step explanation:

5-9x=-76

-9x=-5-76

-9x=81  divide both sides be -9

x=9

which equation has (2, -1) as a solution
a. y=2x-1
b. y=x+3
c. y=x-3
d. y=-2x+1

Answers

Answer:

y=x-3

-1=2-3=-1

............

pls i will give 50 points

Answers

Answer:

y = |x - 1| - 1

Step-by-step explanation:

This is a translation of the absolute value function:

y = |x| is translated down 1 unit and right by 1 unit:

The function is:

y = |x - 1| - 1

WILL GIVE BRAINLIEST ONLY IF ANSWER IS CORRECT!!! WRONG ANSWERS JUST FOR POINTS WILL BE REPORTED!!!!!!!!!!!

Answers

Answer:

r=14 in

Step-by-step explanation:

The volume of a cylinder is given by:

[tex]v = \pi \times {r}^{2} \times h[/tex]

So,

[tex]r = \sqrt{ \frac{v}{\pi \times h} } = \sqrt{ \frac{196 \times \pi}{\pi \times 1} } = \sqrt{196} = 14[/tex]

Step-by-step explanation:

solution given.:

radius[r] =r

height[h]=1in

volume[V] of cylinder=196πin³

we have

volume[V] of cylinder=πr²h

196π=πr×1

r²=[tex] \frac{196π}{π}[/tex]

r=[tex] \sqrt{196} [/tex]

r=14in

so radius is 14in


Mr. Wallace took 600 mg of medicine. This was
75% of the full dose. What is the full dose?

Answers

Answer:800

Step-by-step explanation:

75% = 0.75

600/0.75 = x/1

Cross multiply:

0.75x = 600

Divide 0.75 to both sides:

x = 800

So the full does is 800mg.

A All angles are acute and measure 60°. B One angle is a right angle that measures 90°. C One angle is an obtuse angle that measures more than 90°. D The sum of the three angles equals more than a straight angle. YOU WILL EARN 20 POINTS IT U ANSWER

Answers

Answer:

240 degrees

Step-by-step explanation:

Instructions: Use the ratio of a 30-60-90 triangle to solve for the variables. Leave your answers as radicals in simplest form.

Answers

Answer:

See below for answers and explanations

Step-by-step explanation:

1) y=9, therefore x=2y=2(9)=18

2) y=32/2=16, therefore x=y√3=16√3

multiplying and simplify radicals!

if u get it right I’ll give brainliest (show math pls!!!)

I would rlly appreciate it if y’all help me! :)

Answers

Answer:

≈ 107.33...

Step-by-step explanation:

2 [tex]\sqrt{12}[/tex] x 4[tex]\sqrt{15}[/tex] = 8 [tex]\sqrt{12 *15}[/tex] ≈ 8 x 13.41.. ≈ 107.33...

HELP PLEASE ASAP. NO LINKS OR I WILL REPORT​

Answers

Answer:

For Question 19 the answer is A (the first answer)

For question 34 the answer is C (the third one) but for that I am not 100% you can search that one up

For question 20 the answer is A (the first answer)

A pair of sneakers cost $125. The sales tax rate is 7%, what is the
total cost

Answers

Answer:

133.75

Step-by-step explanation:

Scenario: The Cannon Instructions: View the video found on page 1 of this Journal activity. Using the information provided in the video, answer the questions below. Show your work for all calculations. The Cannon: Ernest's friend Nik is about to be shot out of a cannon. The path he will travel follows a parabolic arch that can be described by this polynomial. f(x) = –0.05(x2 – 26x – 120) He is supposed to land on a safety net 30 feet away. Does the function give you enough information to tell you where he will land? If so, how far from the cannon will he land?

Answers

Answer:

Part A

Yes

Part B

He will land at a point 30 meters from Cannon

Step-by-step explanation:

Part A

The given function that represent the path of the Cannon, which is the path of a parabolic arc, is presented as follows;

f(x) = -0.05·(x² - 26·x - 120)

We note that the height, 'h', of the path of a parabola at a horizontal distance, 'x' from the origin is equal to f(x)

Therefore, given that at the ground level, at the start and end of the flight, the f(x) = 0, we can write;

-0.05·(x² - 26·x - 120) = 0

∴ x² - 26·x - 120 = 0

x = (26 ± √((-26)² - 4 × 1 × (-120)))/(2 × 1)

Which gives;

x = 30 or x = -4

Therefore, he lands at a point 30 meters from the starting point

Therefore, the function gives enough information to tell where he will land

Part B

He lands at the point, x = 30 from the point the cannon was fired.

Does anyone know this question,I need help

Answers

It should be D. You can multiply both numbers by 10 in order to make it in proportion to the graph. Hope this helps:)

A number cube is rolled 35 times and the results are recorded in the table.A goodness-of-fit chi-square test is to be used to test the null hypothesis that the cube is fair. At a significance level of α = 0.05, what is the value of chi-square and the appropriate conclusion?

Answers

Answer:

Where's the table we can go off of??

Step-by-step explanation:

Answer:

2 = 11.2; fail to reject the null hypothesis

Step-by-step explanation:

This is the correct answer for the question I had on the segment exam. Please double-check because the conditions in your question because they might be slightly different and you may need a slightly different answer. Be careful about copying answers off of the internet and good luck!

I used the X^2GOT-Test, so you could check your answers too. For the expected occurrence 35/7 = 5.

WILL MARK BRAINLIEST!!! PLEASE ANSWER!!! WRONG ANSWERS JUST FOR POINTS WILL BE REPORTED!!!!!!!!!!!!!!

Answers

Answer: 2.5

Step-by-step explanation: r= sqrt(V/pi*h)

sqrt(171/(8.7)(3.14)

Step-by-step explanation:

solution given.:

radius=[r] let

height[h]=8.7in

volume[V] of cylinder=171in³

π=3.14

we have

volume[V] of cylinder=πr²h

171=πr×8.7

r²=[tex] \frac{171}{3.14×8.7}[/tex]

r=[tex] \sqrt{6.26} [/tex]

r=2.5in

so radius is 2.5in


PLEASE HELP PLEASE

A girls' choir is choosing a uniform for their concert. They can pick red, green or
purple sweaters, and they can pick tan, white or black skirts. The shoes they need
come in gold and black. Assuming all combinations are acceptable, how many
different combinations can the choir pick?

Answers

Answer:

18

Step-by-step explanation:

Answer:   18 different outfit combinations

=============================================================

Explanation:

There are 3 colors to pick for the sweaters (red, green, purple).There are 3 colors for the skirts (tan, white, black)There are 2 colors for the shoes (gold, black)

Multiply out those values mentioned to get the final answer: 3*3*2 = 9*2 = 18.

There are 18 different outfit combos.

---------------

Further explanation (optional section):

Let's say we only worried about the sweaters and shoes, and for now there's only one color for the skirt. We have 3 colors for the sweaters and 2 for the shoes. Imagine a table with 3 rows and 2 columns. Each row is a different color for the sweater and each column is a different color for the shoe. There are 3*2 = 6 cells inside the table. Each cell is a different outfit.

For instance, we could have R = red sweater and G = gold shoe. Then that means RG = red sweater + gold shoe outfit. So we'd have RG as one of the cells of this 6 cell table.

Now imagine that we laid out a table that is 6 by 3. The 6 is from the 6 outfits calculated earlier, and the 3 is now accounting for the colors of the skirts. We'd then have 6*3 = 18 combos total. Again, each cell inside the table represents a different outfit combo.

which best describes a graph of a two-year-old child's height over the course of a year?

Answers

Answer:

Step-by-step explanation:

First

Use the quadratic formula to find both solutions to the quadratic equation
given below.
4X2 +5x + 1 = 0

Answers

Answer:

A and B are correct

Step-by-step explanation:

SOLVE

270.6 is 16 1/2% OF WHAT NUMBER?

WILL GIVE BRAINLIST




X
X
X
X
X
X
X

Answers

Answer:

165 po ang answer promise po

Answer:1640

To find the % then we have too times the 16 /12% by something right?

After some guessing their is my answer

Hope this helps :)

If you are reading this hope you have a wonderful day!

The more experiments that are performed, the closer the experimental probability gets to the theoretical probability: true or false?

Answers

Answer:

True.

Explanation:

The more experiments that are performed, the more data can be collected.

Other Questions
Ms.Boyers is baking a cake for the holiday. She needs 3 cups of milk and 1 cup of corn syrup. How many ounces of milk and corn syrup does she need in all you have 11 art projects that weigh 24 pounds. If you give you mom 7 of your art projects, how much would her box weigh? What are the four stages of life for a hindu male? What happens when light passes through a solution? perform an activity with a homogenous to expalin what happen when light pass through it.Answer fast and pls read the question ;-; and will give u brainliest i dont know if i am doing this wrong but i got non-fiction, fiction, children, school but it is not an option can someone double check Riley's mom poured her a cold glass of milk ...what is the adjective in the sentence? What figurative language is in this sentence, out did the sparkling waves in glee. Bonita Company has a factory machine with a book value of $87,800 and a remaining useful life of 5 years. It can be sold for $32,000. A new machine is available at a cost of $455,100. This machine will have a 5-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $624,400 to $524,400. Prepare an analysis showing whether the old machine should be retained or replaced. In meiosis, 2 cells have been created at the end of telophase 1, halfway through the process. These cells are said to exist in a haploid state with a diploid number. Explain the statement. Support your answer clearly I WILL PICK THE BRAINLIEST! Also I know the answer but this'll be a great way to earn extra points!A Punnett square is used to A.determine the location of mutated genesB.determine the parent alleles of the offspringC.determine the makeup of chromosomesD.determine the probability of offspring traits Why did the discovery of electrons mean that an atom must contain some positive charge? WARNING!!!!!!!!!: NO LINKS OR I WILL REPORT YOU!!!!! What is the mean of the data set? 108, 305, 252, 113, 191 Enter your answer in the box. Those two photos are connected to each other There are 240 girls at the park. There are 360 more boys than girls at the park.How many boys are at the park? If f(x)= -9x+12, then f(20)=__What is the answer? I need help on finding the inverse for this help me. what are the twin characters of growth Find the area of the circle.20 inches Review the graph of function g(x).On a coordinate plane, a line goes from open circle (0, 0) through (negative 4, 2). A curve goes from the open circle to (2, 1) and then down through open circle (4, 0). A closed circle is at (4, negative 2).Which table identifies Limit as x approaches 0g(x) and Limit as x approaches 4g(x), if they exist? Limit of g (x) as x approaches 0 0 Limit of g (x) as x approaches 4 0 Limit of g (x) as x approaches 0 DNE Limit of g (x) as x approaches 4 DNE Limit of g (x) as x approaches 0 0 Limit of g (x) as x approaches 4 2 Limit of g (x) as x approaches 0 DNE Limit of g (x) as x approaches 4 2 Choose the graph that represents the following system of inequalities:y 3x + 1y 1 over 2x + 3In each graph, the area for f(x) is shaded and labeled A, the area for g(x) is shaded and labeled B, and the area where they have shading in common is labeled AB. Graph of two intersecting lines. Both lines are solid. One line f of x passes through points negative 2, 2 and 0, 3 and is shaded above the line. The other line g of x passes through points 0, 1 and 1, negative 2 and is shaded above the line. Graph of two lines intersecting lines. Both lines are solid. One line g of x passes through points negative 2, 2 and 0, 3 and is shaded below the line. The other line f of x passes through points 0, 1 and 1, negative 2 and is shaded above the line. Graph of two intersecting lines. Both lines are solid. One line passes g of x through points negative 2, 2 and 0, 3 and is shaded below the line. The other line f of x passes through points 0, 1 and 1, negative 2 and is shaded below the line. Graph of two intersecting lines. Both lines are solid. One line f of x passes through points negative 2, 2 and 0, 3 and is shaded above the line. The other line f of x passes through points 0, 1 and 1, negative 2 and is shaded below the line.