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ear investment yields a total return of 16.2%, and t yields a total return of 28.5%. If an initial investr

ear investment yields a total return of 16.2%, and t yields a total return of 28.5%. If an initial investr

Essentials Of Investments
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
Section: Chapter Questions
Problem 1PS
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Three different investment options are available at the beginning of each year during the next 6-year period. The duration of the investments are 1 year, 3 years, and 5 years. The 1-year investment yields a total return of 5.1%, the 3-year investment yields a total return of 16.2%, and the 5- year investment yields a total return of 28.5%. If an initial investment of $ 10,000 is made and all available funds are invested at the beginning of each year, formulate a linear programming model to determine the investment pattern that results in the maximum available cash at the end of the sixth year. Use Excel Solver to solve
Transcribed Image Text:Three different investment options are available at the beginning of each year during the next 6-year period. The duration of the investments are 1 year, 3 years, and 5 years. The 1-year investment yields a total return of 5.1%, the 3-year investment yields a total return of 16.2%, and the 5- year investment yields a total return of 28.5%. If an initial investment of $ 10,000 is made and all available funds are invested at the beginning of each year, formulate a linear programming model to determine the investment pattern that results in the maximum available cash at the end of the sixth year. Use Excel Solver to solve
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