subject
Mathematics, 17.04.2020 17:57 diegovaldes25

A bank has $650,000 in assets to allocate among investments in bonds, home mortgages, car loans, and personal loans. Bonds are expected to produce a return of 10%, mortgages 8.5%, car loans 9.5%, and personal loans 12.5%. To make sure the portfolio is not too risky, the bank wants to restrict personal loans to no more than the 25% of the total portfolio. The bank also wants to ensure that more money is invested in mortgages than personal loans. The bank also wants to invest more in bonds than personal loans.

a. Formulate an LP model for this problem with the objective of maximizing the expected return on the portfolio.
b. Implement your model in a spreadsheet and solve it.
c. What is the optimal solution?

ansver
Answers: 1

Another question on Mathematics

question
Mathematics, 21.06.2019 18:00
Given: and prove: what is the missing reason in the proof? given transitive property alternate interior angles theorem converse alternate interior angles theorem
Answers: 1
question
Mathematics, 21.06.2019 19:30
Ascientist wants to use a model to present the results of his detailed scientific investigation. why would a model be useful? a )because the model makes the concepts easier to understand b) because the model is easy to put together and to use c) because the model prevents other scientists from asking questions d) because the model requires the audience to pay full attention to it i don't know what to choose because between a and d a is much more likely than d because it only wants to get the attention of the audience. i'm confuse.
Answers: 1
question
Mathematics, 21.06.2019 21:30
Ijust need these 2 questions answered (the second pic is just confirmation i'm not confident in that answer)
Answers: 1
question
Mathematics, 22.06.2019 02:00
Which expression represents the total perimeter of her sandwich, and if x = 1.2, what is the approximate length of the crust?
Answers: 2
You know the right answer?
A bank has $650,000 in assets to allocate among investments in bonds, home mortgages, car loans, and...
Questions
question
Mathematics, 26.03.2021 16:10
question
Mathematics, 26.03.2021 16:10
Questions on the website: 13722363