A trader is deciding how to allocate $100,000 to three different mutual funds. Fund 1 has a minimum investment requirement of $10,000, and is expected to return 3% per year. Fund 2 has a minimum investment requirement of $25,000, and is expected to return 5% per year. Fund 3 has a minimum investment requirement of $30,000 and is expected to return 9% per year. In addition, Fund 1 distributes a dividend of 3% of the invested amount per year, while charging a management fee of 0.5% of the invested amount per year. Fund 2 distributes a dividend of 2% of the invested amount per year, while charging a management fee of 0.25% of the invested amount per year. Fund 3 distributes a dividend of 1% of the invested amount per year, while charging a management fee of 0.10% of the invested amount per year. The broker wants to maximize their expected return while also receiving at least $2,000 in dividends per year and paying at most $500 in fees. Suppose x is the amount invested in Fund 1, y is the amount invested in Fund 2, and z is the amount invested in Fund 3, and fill in the blanks below to formulate the trader's problem as a linear program. (Please enter all numerical values in decimal, do not include commas, percents, dollar signs, etc.)
A trader is deciding how to allocate $100,000 to three different mutual funds. Fund 1 has a minimum investment requirement of $10,000, and is expected to return 3% per year. Fund 2 has a minimum investment requirement of $25,000, and is expected to return 5% per year. Fund 3 has a minimum investment requirement of $30,000 and is expected to return 9% per year. In addition, Fund 1 distributes a dividend of 3% of the invested amount per year, while charging a management fee of 0.5% of the invested amount per year. Fund 2 distributes a dividend of 2% of the invested amount per year, while charging a management fee of 0.25% of the invested amount per year. Fund 3 distributes a dividend of 1% of the invested amount per year, while charging a management fee of 0.10% of the invested amount per year. The broker wants to maximize their expected return while also receiving at least $2,000 in dividends per year and paying at most $500 in fees. Suppose x is the amount invested in Fund 1, y is the amount invested in Fund 2, and z is the amount invested in Fund 3, and fill in the blanks below to formulate the trader's problem as a linear program. (Please enter all numerical values in decimal, do not include commas, percents, dollar signs, etc.)
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
Related questions
Concept explainers
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Topic Video
Question
Transcribed Image Text:QUESTION 12
A trader is deciding how to allocate $100,000 to three different mutual funds. Fund 1 has a minimum investment requirement of $10,000, and is expected to return
3% per year. Fund 2 has a minimum investment requirement of $25,000, and is expected to return 5% per year. Fund 3 has a minimum investment requirement of
$30,000 and is expected to return 9% per year. In addition, Fund 1 distributes a dividend of 3% of the invested amount per year, while charging a management fee
of 0.5% of the invested amount per year. Fund 2 distributes a dividend of 2% of the invested amount per year, while charging a management fee of 0.25% of the
invested amount per year. Fund 3 distributes a dividend of 1% of the invested amount per year, while charging a management fee of 0.10% of the invested amount
per year. The broker wants to maximize their expected return while also receiving at least $2,000 in dividends per year and paying at most $500 in fees.
Suppose x is the amount invested in Fund 1, y is the amount invested in Fund 2, and z is the amount invested in Fund 3, and fill in the blanks below to formulate the
trader's problem as a linear program. (Please enter all numerical values in decimal, do not include commas, percents, dollar signs, etc.)
Maximize
x+
y + 0.09z
Subject to:
x+y+zs
y +
z2 2000
x+
x + 0.0025y +
2 25000
QUESTION 13
Save All Answers
Click Save and Submit to save and submit. Click Save All Answers to save all answers.
MacBook Air
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, advanced-math and related others by exploring similar questions and additional content below.Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
