7. Investment Advisors, Inc., is a brokerage firm that manages stock portfolios for a numberof clients. A particular portfolio consists of U shares of U.S. Oil and H shares of HuberSteel. The annual return for U.S. Oil is $3 per share and the annual return for Huber Steelis $5 per share. U.S. Oil sells for $25 per share and Huber Steel sells for $50 per share.The portfolio has $80,000 to be invested. The portfolio risk index (0.50 per share of U.S.Oil and 0.25 per share for Huber Steel) has a maximum of 700. In addition, the portfoliois limited to a maximum of 1000 shares of U.S. Oil. The linear programming formulationthat will maximize the total annual return of the portfolio is as follows:Маx3U +5HMaximize total annual returns.t.25U + 50H < 80,000 Funds available0.50U + 0.25D s 700 Risk maximum< 1000 U.S. Oil maximum1UU, H 20

Answered: Image /qna-images/answer/53c9a7a3-b787-46ee-8434-21deae8416ea.jpg

Answered: is limited to a maximum of 1000 shares…

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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7. Explain why it is not necessary to include product cost (price or price times quantity) in the EOQ model, but the quantity inventory system. discount model requires this information.
Pls help ASAP on both
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Daniel Grady is the financial advisor for a number of professional athletes. An analysis of the long-term goals for many of these athletes has resulted in a recommendation to purchase stocks with some of their income that is set aside for investments. Five stocks have been identified as having very favorable expectations for future performance. Although the expected return is important in these investments, the risk, as measured by the beta of the stock, is also important. (A high value of beta indicates that the stock has a relatively high risk.) The expected return and the betas for five stocks are as follows: Stock 1 2 3 4 5 Expected Return (%) 11.0 9.0 6.5 15.0 13.0 Beta 1.20 0.85 0.55 1.40 1.25 Daniel would like to minimize the beta of the stock portfolio (calculated using a weighted average of the amounts put into the different stocks) while maintaining an expected return of at least 11%. Since future conditions may change, Daniel…
Wn Health Clinic needs to order influenza vaccines for the next flu season. The Clinic charges its patients $16.00 per vaccination and each dose of vaccine costs the clinic $4.00 to purchase. The Center for Disease Control has a long standing policy of buying back unused vaccines for $1.00 per dose. The Clinic estimates the following probability distribution for the season's demand. Demand 1,000 2,000 3,000 4,000 5,000 Probability 0.04 0.22 0.24 0.41 0.09 D a. How many vaccines should the Clinic order to maximize its expected profit? The Clinic should order vaccines because it yields the maximum expected profit of $ (Enter your responses rounded to the nearest whole number.) LO
1 ton of material 1 ton of material 2, and 11/13 3 10 The Kashif Corporation blends three raw materials to produce two products: a fuel additive and a solvent base. Each ton of fuel additive is a mixture of ton of material 1 and 3 ton of material 3. A ton of solvent base is a mixture of // Kashif's production is constrained by a limited availability of the three raw materials. For the current production period, Kashif has the following quantities of each raw material: material 1, 20 tons; material 2, 5 tons; material 3, 21 tons. Management wants to achieve the following P, priority level goals. Goal 1: Produce at least 30 tons of fuel additive. Goal 2: Produce at least 15 tons of solvent base. Assume there are no other goals. (a) Is it possible for management to achieve both P₁ level goals given the constraints on the amounts of each material available? If not, which constraint is the limiting factor? O Yes. It is possible to satisfy both P₁ level goals. O No. There is an insufficient…
The total asset of a company is OMR320,000; its current liabilities are OMR30,000 and its revenue for the current year is OMR150,000. Calculate the amount of capital employed. O a. OMR470,000 O b. OMR290,000 Oc.OMR350,000 O d. OMR500,000
A loan of 200,000 is to be repaid with level monthly payments based on a 30 -year amort zation schedule. At the end of 7 years, The loan will be paid off with a balloon payment. The annual effective interest rate is 7%. Calculate the amount of the balloon payment. ◻ 181,677 181,950 182,979 183,593 183,625
Q12)A companys capital structure consists of the following. Amount in () Eauity share of ₹100 Each Retained Earnings 9% Preference shares 10% Debentures 15,00,000 Total The company earns 10% on its capital. The Income tax Rate is 50%. The company requires a sum of ₹25,00,000 to finance its Expansion programme for which the following alternatives are Available to it:- 1) Issue of 20,000 equity shares at a premium of 25 per share. 2) Issue of 10% preference shares. 3) Issue of 8% debentures. Which of the three financing alternatives would you recommend and why?
du/courses/423127/quizzes/3325 take/questions/60963079 Table on the right shows the net cashflow (NCF) and cumulative cashflow for two projects X and Y. Answer the following questions. 1- Based on Descarte's rule of signs, what is the max. number of real ROR (i*) for project X? (put numerical number) 2- Looking at cumulative CF of project X, can we tell that it has only one positive i* value? (put "yes" Project X Project Y Year NCF Cumulative CE NCF Cumulative CF or "no") 180 -100 20,000 20,000 1 50 -130 16,000 36,000 3- Based on Descarte's rule of signs, what is the 36,000 2 50 80 50 30 25,000 25,000 max. number of real ROR (i*) for project Y? (put 4 50 20 30,000 5,000 numerical number) 4- Looking at cumulative CF of project Y, can we tell that it has only one positive i* value? (put "yes" or "no")
Lifang Wu owns an automated machine shop that makes precision auto parts. He has just compiled an input-output report for the grinding work center. Period 1 3 4 Total Planned input 70 70 85 85 Actual input 75 75 75 75 Deviation Planned output Actual output 75 75 75 75 85 85 80 80 Deviation Initial backlog: 20 For the given information related to "inputs," the values for deviation and total are: The deviation in period 2 = units (enter your response as an integer, including a minus sign if necessary). The deviation in period 4 = units (enter your response as an integer, including a minus sign if necessary). The total for "planned inputs" = units (enter your response as an integer, including a minus sign if necessary). The total for "actual inputs" = units (enter your response as an integer, including a minus sign if necessary). The total deviation for "inputs" = units (enter your response as an integer, including a minus sign if necessary). "3D For the given information related to…
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