Investment Strategy to Meet Clients Needs

 

Investment Strategy to Meet Clients Needs. Recall the Innis Investments problem (Chapter 2. Problem 39). Letting
S = units purchased in the stock fund
M = units purchased in the money market fund
leads to the following formulation:
Min 8S + 3M
s.t.
50S + 100 is less or equal to 200,000 Funds available
5S + 4 is greater or equal to 60,000 Annual income
M is greater or equal to 3,000 Units is money market
S,M is greater or equal to 0
a. What is the optimal solution. and what is the minimum total risk?
b. Specify objective coefficient ranges.
c. How ual income will he earned by the portfolio?
d. What is the rate of return for the portfolio?
e. What is the dual salue for the funds available constraint?
f. What is the marginal rate of return on extra funds added to the portfolio’

 

 

 

 

Sample Solution

Section I: INTRODUCTION TO THE STUDY Introduction The country is encountering a basic deficiency of medical care suppliers, a lack that is supposed to increment in the following five years, similarly as the biggest populace in our country’s set of experiences arrives at the age when expanded clinical consideration is vital (Pike, 2002). Staffing of emergency clinics, facilities, and nursing homes is more basic than any time in recent memory as the huge quantities of ‘gen X-ers’ start to understand the requirement for more continuous clinical mediation and long haul care. Interest in turning into a medical caretaker has disappeared lately, likely because of the historical backdrop of the extraordinary and requesting instructive cycle, low compensation, firm and extended periods of time, and fast ‘wear out’ of those rehearsing in the calling (Wharrad, 2003). A complex oversaw care climate in this country is restricting the dollars accessible to be spent on nursing care. Numerous wellbeing callings, particularly

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