An investment company manages portfolios of stocks, bonds, and other investment alternatives. One of the company's clients would like to invest $200,000 in stocks. The client is interested in four specific stocks - A, B, C, and'or D. The company gathered the following relevant financial data for the four stocks: Stock A $100 0.12 Stock B Stock C Stock D Price per share Annual rate of 550 0.08 S80 $40 0.06 0.10 retum Risk measure per dollar invested 0.10 0.07 0.05 0.08 Based on the above data, the investor has stipulated the following investment guidelines: 1. The entire amount of $200,000 must be invested. 2. The annual rate of return must be at least 9% of the invested capital of $200,000. 3. Not every stock has to be purchased, however, if selected, no one stock can account for more than 50% of the total dollar investment. 4. The total investment in stocks A and B combined must be equal to or greater than the total inYetment in teski Cand R sembined
An investment company manages portfolios of stocks, bonds, and other investment alternatives. One of the company's clients would like to invest $200,000 in stocks. The client is interested in four specific stocks - A, B, C, and'or D. The company gathered the following relevant financial data for the four stocks: Stock A $100 0.12 Stock B Stock C Stock D Price per share Annual rate of 550 0.08 S80 $40 0.06 0.10 retum Risk measure per dollar invested 0.10 0.07 0.05 0.08 Based on the above data, the investor has stipulated the following investment guidelines: 1. The entire amount of $200,000 must be invested. 2. The annual rate of return must be at least 9% of the invested capital of $200,000. 3. Not every stock has to be purchased, however, if selected, no one stock can account for more than 50% of the total dollar investment. 4. The total investment in stocks A and B combined must be equal to or greater than the total inYetment in teski Cand R sembined
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter11: Simulation Models
Section11.3: Financial Models
Problem 26P
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2) What are the objective coefficient ranges for the four stocks? Show the relevant portion of the Solver’s output. Fully interpret these ranges.
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