What is the objective function

Assignment Help Business Management

Reference no: EM131855036

Question: A company investsin various types of security. They have $9 million for immediate investment and wish to maximize the interest earned over the next year. Risk is not a factor. Preferred investment alternatives include Bonds (B), Stocks (S), Gold (G), Land (L), BitCoin* (C), and famous Art Masterpieces (M). The expected return for Bonds is 5%, Stocks 12%, Gold 11%, Land 4%, BitCoin 2%, and Art Masterpiece 3%. The maximum amount to be invested for each alternative is $2 million for Bonds, $1 million for Socks, $2 million for Gold, $1 million for Land, $2 million for BitCoin, and $3 million for Art Masterpieces. To structure the portfolio, the Senior VP has specified that at least 20% of the investment should be in corporate Bonds, common Stocks, and BitCoin; and no more than 35% of the investment is to be in Gold and Land. In addition, the total investments on Bond, Stocks, and Gold should be greater than the total amount of money invested on Land, BitCoin and Art Masterpieces. The objective is to maximize the return. Formulate a linear model.

*BitCoin: an innovative consensus payment network that enables a new payment system and a completely digital money.

(You don't have to solve this problem using either Excel or QM)

A. What are the Decision Variables?

B. What is the Objective Function?

C. What are the Constraint Equations including non-negativity constraints?

Reference no: EM131855036

Questions Cloud

What is the capacity utilization rate for the factory : A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 20,200 units of output each month.

How long does it take a truck to travel across the us : How long does it take a truck to travel across the U.S.? How long does it take a railroad train to travel across the U.S.?

Leadership styles identified by self assessment : Consider your leadership styles identified by your self assessment and determine if they act as a barrier of facilitation during dilemma

What arguments or facts would the citizens seeking : What arguments or facts would the citizens seeking to have the bricks removed advance?What arguments or facts would the citizens seeking to have the bricks stay

What is the objective function : A company investsin various types of security. They have $9 million for immediate investment and wish to maximize the interest earned over the next year.

Electronic medical record selection process : Can you briefly describe the electronic medical record selection process?

Speculate how the individual ethnicity contributes : Speculate how the individual's ethnicity contributes to his hypertension. Discuss other determinants of health that contribute to the prevalence of hypertensive

Does the court go far enough with this landmark decision : Look up the landmark case Graham v. Connor. Think about what you learned this week, and how this case is relevant to your work in law enforcement.

When doing a video submission of a powerpoint : When doing a video submission of a powerpoint, do you have any suggestions on how to present the powerpoint if you are taping yourself explaining the powerpoint

User Account

All Pages