I need d) e) and f)
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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I need d) e) and f)

Transcribed Image Text:Optimal Objective Value =
62000.00000
Variable
Value
Reduced Cost
S
4000.00000
0.00000
M
10000.00000
0.00000
Constraint
Slack/Surplus
Dual Value
1
0.00000
-0.05667
2
0.00000
2.16667
7000.00000
0.00000
Objective
Allowable
Allowable
Variable
Coefficient
Increase
Decrease
8.00000
Infinite
4.25000
M
3.00000
3.40000
Infinite
RHS
Allowable
Allowable
Constraint
Value
Increase
Decrease
1
1200000.00000
300000.00000
420000.00000
2
60000.00000
42000.00000
12000.00000
3
3000.00000
7000.00000
Infinite

Transcribed Image Text:10. 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 + 100M < 1,200,000
Funds available
5S +
4M >
60,000
Annual income
3,000
Units in money market
S, M > 0
The computer solution is shown in Figure 3.16.
a. What is the optimal solution, and what is the minimum total risk?
b. Specify the objective coefficient ranges.
c. How much annual income will be earned by the portfolio?
d. What is the rate of return for the portfolio?
e. What is the dual value for the funds available constraint?
f. What is the marginal rate of return on extra funds added to the portfolio?
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