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

Production possibilities curve, Using a production possibilities curve, an ...

Using a production possibilities curve, an economy that produces an output combination less than the maximum possible is depicted by a point located. a. at the top corner of the

Aggregate demand in the is-lm model, Q. Aggregate demand in the IS-LM model...

Q. Aggregate demand in the IS-LM model? Aggregate demand Aggregate demand depends on Y and R in the IS-LM model As investments depend on R

Kind of organization, Informal groups exist in almost every kind of organiz...

Informal groups exist in almost every kind of organization. Answer the following questions and provide examples to support your position: • What types of informal groups do you

Annual income from an apartment, The annual income from an apartment comple...

The annual income from an apartment complex is $20,664. The annual expense is estimated to be $3,414. The apartment complex could be sold for $146,499 at the end of 10 years. If yo

Theand the protection of property rights, Why is private property, and thea...

Why is private property, and theand the protection of property rights , so critical to the success of the market system ? How do property rights encourage cooperation?

Considering two types of water heaters, A company is considering two types ...

A company is considering two types of water heaters. The associated costs are shown below. The estimated annual cost of operation for oil heaters equals 365 x 41045/EF x Fuel Cost

Seafood restaurant in a beach resort town, A seafood restaurant in a beach ...

A seafood restaurant in a beach resort town has a fixed (unavoidable) cost of $1,000 per month and variable (avoidable) costs of another $1,000 per month. Its total revenues over t

Introducing the foreign trade sector, Introducing the Foreign Trade Sector ...

Introducing the Foreign Trade Sector  Most economies in the real world are open economies. They engage in trade with other economies. Goods and services are exported and import

Illustrate biological effects of ochratoxin, Q. Illustrate Biological effec...

Q. Illustrate Biological effects of Ochratoxin? Biological effects: It is associated with the chronic progressive kidney disease in humans known as Balkan endemic nephropathy.

National income, # ???? .. difference between gdp at market price and nnp...

# ???? .. difference between gdp at market price and nnp at factor cost

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