Reference no: EM131427875
A bank is attempting to determine where its assets should be invested during the current year. At present, $500,000 is available for investment in bonds, home loans, auto loans and personal loans. The annual rate of return on each type of investment is known to be: bonds, 10%; home loans, 16%; auto loans, 13%; personal loans, 20%.
To ensure that the bank’s portfolio is not too risky, the bank’s investment manager has placed the following three restrictions on the bank’s portfolio:
Constraint 1: The amount invested in personal loans cannot exceed the amount invested in bonds.
Constraint 2: The amount invested in home loans cannot exceed the amount invested in auto loans.
Constraint 3: No more than 25% of the total amount invested may be in personal loans The bank’s objective is to maximize the annual return on its investment portfolio. Formulate and solve an LP that will enable the bank to meet this goal.
Solve using Microsoft Excel Solver. Be sure to show formulas inputed into Microsoft Excel Solver and show all constraints.
|
Training for a local environmental volunteer organization
: Consider the following: Jamie recently attended training for a local environmental volunteer organization. She expected that this training would prepare her to lead local river clean-ups with school children.
|
|
Impact of corporate social responsibility
: What is the impact of corporate social responsibility on a company's strategic positioning?
|
|
What is the appropriate tax rate to be used in wacc
: What's the appropriate tax rate to be used in WACC? Suppose a firm pays total dividends of $1,240,000 out of a net income of $8 million. What would the firm's payout ratio be
|
|
Common conflicts among health professionals
: Which one of the common conflicts among health professionals do you find the most prominent in healthcare? What are the effects of that conflicts? Explain with an Example.
|
|
Three restrictions on the bank portfolio
: A bank is attempting to determine where its assets should be invested during the current year. At present, $500,000 is available for investment in bonds, home loans, auto loans and personal loans. To ensure that the bank’s portfolio is not too risky,..
|
|
What type of financial incentives are offered on website
: The use of website advertising has become a highly effective method of reaching consumers. Why is this the case? The purpose of this assignment is to answer that question and to identify the characteristics of an effective website design by compar..
|
|
How these design elements encourage learning and transfer
: Traditionally, Autodesk used to hold tow annual training events for its partners in the United States and Canada. Autodesk decided to convert the face-to-face, instructor-led training event to a virtual classroom, the program’s core content was revie..
|
|
Pros and cons for a formal disciplinary process
: Conclude your essay by defending at least three specific recommendations you would make to the university ,paper should be 6-8 pages, in APA format, and include atleast 4 references.
|
|
Analyze the execution strategy for the sbu
: Select a publicly traded organization that you have not used previously in this course. You are strongly encouraged to use the same organization that you are using for your Unit 10 assignment - Analyze the execution strategy for the SBU and What el..
|