Crypt-Me-Not Investments, Inc. is a new investment firm that deals exclusively with cryptocurrency investments. An investor wants to invest $100,000 in cryptocurrency next year and approaches them about investing in Solana (SOL) and Dogecoin (DOGE) which are currently selling at $175 and $1.00, respectively. The expected annual return on each unit of SOL is $180 and on each unit of DOGE is $100 and like everyone else, the investor wants to maximize their returns. The risk index associated with each unit of SOL is 1.6 and with each unit of DOGE is 1.8. Crypt-Me-Not recommends not crossing a total risk value of 5000 with the client's investments. Moreover, since DOGE is substantially cheaper and less risky than SOL, the investor insists that a minimum of 1,000 units of DOGE in the portfolio is necessary. Based on these constraints, formulate a Linear Program and answer the following questions after solving it using Solver in Excel (Round up to the next whole number for first three answers). 1. The optimal number of Solana coins purchased is and the number of Dogecoins is 2. The annual maximized returns on this $100,000 investment are expected to be $_

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Crypt-Me-Not Investments, Inc. is a new investment firm that deals exclusively with cryptocurrency investments.
An investor wants to invest $100,000 in cryptocurrency next year and approaches them about investing in Solana
(SOL) and Dogecoin (DOGE) which are currently selling at $175 and $1.00, respectively. The expected annual
return on each unit of SOL is $180 and on each unit of DOGE is $100 and like everyone else, the investor wants
to maximize their returns. The risk index associated with each unit of SOL is 1.6 and with each unit of DOGE is 1.8.
Crypt-Me-Not recommends not crossing a total risk value of 5000 with the client's investments. Moreover, since
DOGE is substantially cheaper and less risky than SOL, the investor insists that a minimum of 1,000 units of DOGE
in the portfolio is necessary. Based on these constraints, formulate a Linear Program and answer the following
questions after solving it using Solver in Excel (Round up to the next whole number for first three answers).
1. The optimal number of Solana coins purchased is
and the number of Dogecoins is
2. The annual maximized returns on this $100,000 investment are expected to be $
Transcribed Image Text:Crypt-Me-Not Investments, Inc. is a new investment firm that deals exclusively with cryptocurrency investments. An investor wants to invest $100,000 in cryptocurrency next year and approaches them about investing in Solana (SOL) and Dogecoin (DOGE) which are currently selling at $175 and $1.00, respectively. The expected annual return on each unit of SOL is $180 and on each unit of DOGE is $100 and like everyone else, the investor wants to maximize their returns. The risk index associated with each unit of SOL is 1.6 and with each unit of DOGE is 1.8. Crypt-Me-Not recommends not crossing a total risk value of 5000 with the client's investments. Moreover, since DOGE is substantially cheaper and less risky than SOL, the investor insists that a minimum of 1,000 units of DOGE in the portfolio is necessary. Based on these constraints, formulate a Linear Program and answer the following questions after solving it using Solver in Excel (Round up to the next whole number for first three answers). 1. The optimal number of Solana coins purchased is and the number of Dogecoins is 2. The annual maximized returns on this $100,000 investment are expected to be $
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