Investment-annual rate of return

Assignment Help Operation Management
Reference no: EM13759630

A brokerage firm has been tasked with investing $500,000 for a new client. The client has asked that the broker select promising stocks and bonds for investment, subject to the following guidelines:

At least 20% in municipal

At least 10% each in real estate stock and pharmaceutical stock

At least 40% in combination of energy and domestic automobile stocks, with each accounting for at least 15%

No more than 50% of the total amount invested in energy and automobile stocks in a combination of real estate and pharmaceutical company stock

Subject to these constraints, the clients goal is to maximize projected return on investments. The broker has prepared a list of high quality stocks and bonds and their corresponding rates of return, as shown in the following table.

Investment: Annual Rate of Return

City of Miami (municipal) bonds: 5.3%

American Smart Car: 8.8%

Green Earth Energy: 4.9%

Rosslyn Pharmaceuticals: 8.4%

RealCo (real estate): 10.4%

Formulate this portfolio selection problem by using LP and solve it by using excel/spreadsheet

Reference no: EM13759630

What is meant by political risk

What is meant by political risk? High political risk is more likely in countries with what type of political system? Include specific potential negative outcomes to businesses

In what ways might they be compatible with organizational

In what ways might the divisionalized forms of most airlines lend themselves to the requirements of alliance membership? In what ways might they be compatible with the organ

Explain how an understanding of emotional intelligence

Define emotional intelligence and explain how an understanding of emotional intelligence could assist individuals in understanding themselves and in improving their relationsh

What is the throughput time of typical order

A small neighborhood restaurant is staffed by a hostess, five wait staff and four cooks. The hostess seats the guests and hands out the menu which takes 3 minutes. Then a wait

Normal operation of the Use Case for Change DVDs

Draw a sequence diagram to illustrate the normal operation of the Use Case for “Change DVDs” for the DVD player described in the previous question. Your sequence should start

What is the machines internal rate of return

The Donut Shoppe is considering buying a new donut machine for a total of $110,110. The Donut Shoppe estimates that this new machine will increase its cash inflow each year, a

Sentences contains a dangling modifier

Which of the following is a fragmented sentence? Identify the sentence with correct parallel construction from the choices below. Which of the following sentences contains a d

Avoid the creation of a vague scope baseline

On occasion, a scope baseline (particularly the scope statement) will be written in a fashion that is vague. In such situations, determining what is inside and what is outside

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd