Find the investment arrangement of portfolio , Macroeconomics

Assignment Help:

A financial manager wants to design an investment portfolio for a client. The client has $50,000 available to invest, and the planner has identified four investment options for the fund. The following requirements have been placed on the planner.

-No single option should absorb more than 40% of the fund.

-At least 60% of the fund should be invested in options that will mature within 5 years.

-The investment amount on excellent-rating options should be at least $15,000 or higher than the investment amount on good-rating options.

Set up the linear program to help this planner find the investment arrangement that can maximize this portfolio's return. Report your investment arrangement and the portfolio return.

Investment Option

Return Rate

Rating

Years to Mature

A

5.5%

Excellent

4

B

9%

Good

3

C

7%

Excellent

7

D

11%

Good

6


Related Discussions:- Find the investment arrangement of portfolio

Demand in the local hardware industry, The elasticity of demand in the loca...

The elasticity of demand in the local hardware industry is -2, while in the video market it is. Which industry has a higher markup over marginal cost (as a percentage of price)?

Retirement planning, For retirement planning, you decided to deposit $1,000...

For retirement planning, you decided to deposit $1,000 per month and increase your deposit by $100 per month. How much will you have at the end of 10 years if the bank pays 3% annu

Mankiw, Using the Mundell-Fleming model, describe how an increase in a coun...

Using the Mundell-Fleming model, describe how an increase in a country’s risk premium on the world interest rate can result in a higher level of real income. Under what circumstanc

Modern theory of rent, Explain modern theory of rent eith diagrams and defi...

Explain modern theory of rent eith diagrams and defination

5 key pieces of data, Review the Federal Reserve Board website. Identify at...

Review the Federal Reserve Board website. Identify at least five key pieces of data (links) you would use in microeconomic decision making on the Web site, and tell what data that

Public Sector, What is top marginal rate of taxation?

What is top marginal rate of taxation?

Corresponding future value, Calculate the present value P at time zero and ...

Calculate the present value P at time zero and the corresponding future value F at the end of year three for a series of $15,000 payments to be made at the end of each of years one

Foreign institutional investment, Foreign Institutional  Investment: ...

Foreign Institutional  Investment: Foreign  investment flows in the balance of payments  (BOP) comprise FDI flows and portfolio flows. The latter consists of resources mobilis

Particular public policy, Select a particular public policy with which you ...

Select a particular public policy with which you are familiar and discuss two positive and two negative aspects of that policy. b. What goal do you think the policy makers were try

Write Your Message!

Captcha
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