A company has $10,000 to invest , to be divided into fixed interest, equities and property. For surety of return the client requires at least 50% to be placed in fixed interest and for liquidity he specifies that no more than 30% be invested in property. The projected return over the coming year is forecast to be 5% on the fixed interest investments, 7% on equities and 8% on property. How should the £10,000 be split between the three types of investment in order to maximise the return over the coming year? Hint: To formulate the linear programming problem use x as the amount invested in fixed interests, y as the amount invested in equities and then 10,000 - x - y will be the amount invested in property.

A company has $10,000 to invest , to be divided into fixed interest, equities and property. For surety of return the client requires at least 50% to be placed in fixed interest and for liquidity he specifies that no more than 30% be invested in property. The projected return over the coming year is forecast to be 5% on the fixed interest investments, 7% on equities and 8% on property. How should the £10,000 be split between the three types of investment in order to maximise the return over the coming year? Hint: To formulate the linear programming problem use x as the amount invested in fixed interests, y as the amount invested in equities and then 10,000 - x - y will be the amount invested in property.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

Mr. Mermiad gets paid on commission. He sold a car for $56,000 and gets 8% commission. How much did Mr Mermaid make on this sale?
If the New York Philharmonic records Beethoven's 5t Symphony on DG records. And, DG records pays for the recording, musicians and expenses of the recording, WHO owns the "pertormance" of the work: A. The NY Philharmonic B.DG Records C.The Conductor of the Orchestra D.Beethoven
A new housing development has lots of packed earth and weeds, but no grass. Two neighbors make a wager on who will be the first to have a lush lawn. Mr. Furious knows that a lawn will not grow without grass seed, so he immediately buys the most expensive seed he can find because everyone knows that quality improves with price. Besides, he will recover the cost of the seed through his wager. Next, he stands knee deep in his weeds and tosses the seed around his yard. Confident that he has a headstart on his neighbor, who is not making much visible progress, he begins his next project. Ms. Slo N. Steady, having grown up in the country, proceeds to clear the lot, till the soil, and even alter the slope of the terrain to provide better drainage. She checks the soil’s pH, applies weed killer and fertilizer, and then distributes the grass seed evenly with a spreader. She applies a mulch cover and waters the lawn appropriately. She finishes several days after her neighbor, who asks if she…
On December 31, 2019, the unadjusted trial balance of Tarzwell Services showed the following balances: Accounts receivable Allowance for doubtful accounts Sales $200,000 1,000 Cr. 700,000 The business has given up trying to collect $5,000 of its accounts receivable but has not yet recorded the write-off entry. The firm uses the allowance method to estimate bad-debt expense. Required a) Provide the entry for the write-off. b) If the firm uses the percent-of-sales allowance method for recording bad-debt expense, and has experienced an average 6% rate of non-collection based on sales, provide the entry to record bad-debt expense for 2019. c) Assume that after the firm recorded the $5,000 of write-offs, it determined that 18% of its remaining accounts receivable will be uncollectible under the aging method. Provide the entry to record bad-debt expense. Don't give answer in image format
Nylah and Toddare friends. Nylah is engaged and wants to have the wedding of her dreams, but she cannot afford it. Todd wants to help with this, so he tells Nylah he will give her $10,000 today, and she can pay him back in monthly installments of $100 beginning next month when she returns from her honeymoon. Nylah agrees and does have the wedding of her dreams. A month later, Todd asks Nylah for the first installment of $100. Nylah refuses. Todd sues Nylah. The court will a. order Nylah to pay Todd the money because there was consideration. b. not order Nylah to pay the money because there was nothing in writing. c. not order Nylah to pay the money because they are friends. d. order Nylah to pay Todd the money because there was noconsideration.
Pls help ASAP
distinguish between the terms sustaiability and sustaibale yield
S sold to B a specific car for P300,000 and promised to deliver on December 25. The next day, after the salewas made, he sold the same car to X and delivered it on him on the same day. If no delivery is made by S to B on December 26, which of the following is correct? A. S is not in default because there was no demand. B. S is in default, even if there was no demand.Hence, he will answer for damages.C. B can cancel the contract between S and X because the contract of S and B was perfected ahead of the contract with X.D. S is liable to B for the value of the car
A cattle producer purchased an insurance contract form the USDA Risk Management Agency. The contract pays a fixed dollar amount if and only if the rainfall in the 10 by 10 miles grid surrounding the producer’s land falls below 90 percent of the historical average rainfall. According to the lecture, this is a type of _____ insurance A cattle producer purchased an insurance contract form the USDA Risk Management Agency. The contract pays a fixed dollar amount if and only if the rainfall in the 10 by 10 miles grid surrounding the producer’s land falls below 90 percent of the historical average rainfall. According to the lecture, this is a type of _____ insurance weather pure parametric aggregate loss index parametric index
Pls help ASAP
Find the present value of annuity of Rs. 400 for 10 years at 5% compound interest.
Chris, the president of SGC Properties, is considering submitting a bid to purchase property that will be sold by sealed bid at a county tax foreclosure. Chris’ initial judgment is to submit a $5 million. Based on his experience, Chris estimates that a bid of $5 million will have a 0.2 probability of being the highest bid and securing the property for SGC. The current date is July 1. Sealed bids for the property must be submitted by September 15. The winning bid will be announced on October 1. If SGC submits the highest bid and obtains the property, the firm plans to build and sell a complex of luxury condominiums. However, a complicating factor is that the property is currently zoned for single-family residences only. Chris believes that a referendum cold be placed on the voting ballot in time for the November election. Passage of the referendum would change the zoning of the property and permit construction of the condominiums. The sealed-bid procedure requires the bid to be…