A bank has $611,000 in assets to allocate among investments in bonds, home mortgages, car loans, and personal loans. Bonds are expected to produce a return of12%, mortgages 10.5%, car loans 11.5%, and personal loans 14.5%. To make sure the portfolio is not too risky, the bank wants to restrict personal loans to nomore than the 25% of the total portfolio. The bank also wants to ensure that at least as much money is invested in mortgages as is invested in personal loans. Thebank also wants to invest at least as much in bonds as they do in personal loans. (Let X₁, X₂, X, and X, be the amount (in dollars) invested in bonds, mortgages,car loans, and personal loans, respectively.)(a) Formulate an LP model for this problem with the objective of maximizing the expected return (in dollars) on the portfolio.MAX:Subject to:total amount spentamount for personal loansmortgages and personal loansbonds and personal loansX₁, X. X, X ZO(b) Implement your model in a spreadsheet and solve it. What is the optimal solution?(X₂G

For this question, first I will formulate the Linear programming model, Then, solve this model using…

Answered: (a) Formulate an LP model for this…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Investment A woman invests $360,000 in three different mutual funds. One averages 12% per year,and another averages 16% per year. A third fundaverages 8% per year, and because it has much lessrisk, she invests twice as much in it as in the sum ofthe other two funds. To realize an annual return of$35,200, how much should she invest in each fund?
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I need help with everything, please. hint: you will need to define one variable for total funds needed; one variable for each for 2 securities. and five variables for investment in savings at the beginning of each year. The 6th year will be 1.04 times the 5th-year saving variable. Formulate the problem and submit the formulation - no need to solve 1. As part of the settlement for a class action lawsuit, Hoxworth Corporation must provide sufficient cash to make the following annual payments (in thousands of dollars): Year Payment 1 190 2 215 3 240 4 285 5 315 6 460 The annual payments must be made at the beginning of each year. The judge will approve an amount that, along with earnings on its investment, will cover the annual payments. Investment of the funds will be limited to savings (at 4% annually) and government securities, at prices and rates currently quoted in The Wall Street…
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