Business
Business, 12.11.2020 18:50, avahrider1

Innis Investments manages funds for a number of companies and wealthy clients. The investment strategy is tailored to each client's needs. For a new client, Innis has been authorized to invest up to $1.2 million in two investment funds: a stock fund and a money market fund. Each unit of the stock fund costs $50 and provides an annual rate of return of 10%; each unit of the money market fund costs $100 and provides an annual rate of return of 4%.The client wants to minimize risk subject to the requirement that the annual income from the investment be at least $60,000.According to Innis' risk measurement system, each unit invested in the stock fund has a risk index of 8, and each unit invested in the money market fund has a risk index of 3. The higher risk index associated with the stock fund simply indicates that it is the riskier investment. Innis's client also specified that at least $300,000 be invested in the money market fund. Refer to the computer solution shown below. Optimal Objective Value = 62000.00000Variable Value Reduced CostS 4000.00000 0.00000M 10000.00000 0.00000Constraint Slack/Surplus Dual Value1 0.00000 0.056672 0.00000 βˆ’2.166673 7000.00000 0.00000Variable Objective Allowable Allowable Coefficient Increase DecreaseS 8.00000 Infinite 4.25000M 3.00000 3.40000 InfiniteConstraint RHS Allowable Allowable Value Increase Decrease 1 1200000.00000 300000.00000 420000.000002 60000.00000 42000.00000 12000.000003 3000.00000 7000.00000 Infinite(a) Suppose the risk index for the stock fund (the value of CS) increases from its current value of 8 to 14. How does the optimal solution change, if at all?Option a. The optimal solution becomes (9600, 3000).Option b. The optimal solution does not change. (b)Suppose the risk index for the money market fund (the value of CM) increases from its current value of 3 to 5.5. How does the optimal solution change, if at all?Option a. The optimal solution becomes (9600, 3000).Option b. The optimal solution does not change. (c) Suppose CS increases to 14 and CM increases to 5.5. How does the optimal solution change, if at all?Option a. The optimal solution becomes (9600, 3000).Option b. The optimal solution does not change.

answer
Answers: 3

Other questions on the subject: Business

image
Business, 22.06.2019 01:30, AbyssAndre
Can you post a video on of the question that you need on
Answers: 2
image
Business, 22.06.2019 04:10, KadaLearns
Universal containers(us) has an integration with its accounting system that creates tens of thousands of orders inside salesforce in a nightly batch. us wants to add automation that can attempt to match leads and contacts to these orders using the email address field on the insert. us is concerned about the performance of the automation with a large data volume. which tool should uc use to automate this process?
Answers: 1
image
Business, 22.06.2019 09:40, natalie2sheffield
Catherine de bourgh has one child, anne, who is 18 years old at the end of the year. anne lived at home for seven months during the year before leaving home to attend state university for the rest of the year. during the year, anne earned $6,000 while working part time. catherine provided 80 percent of anne's support and anne provided the rest. which of the following statements regarding whether anne is catherine's qualifying child for the current year is correct? a. anne is a qualifying child of catherine. b.anne is not a qualifying child of catherine because she fails the gross income test. c.anne is not a qualifying child of catherine because she fails the residence test. d.anne is not a qualifying child of catherine because she fails the support test.
Answers: 2
image
Business, 22.06.2019 11:00, aiueo946
Aprofessional does specialized work that's primarily: degree based. medical or legal. well paying. intellectual and creative
Answers: 2
Do you know the correct answer?
Innis Investments manages funds for a number of companies and wealthy clients. The investment strate...

Questions in other subjects:

Konu
History, 02.06.2020 22:59
Konu
Mathematics, 02.06.2020 22:59