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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A computer contains 10,000 resistors. When any resistor fails, it is replaced. The cost of replacing a resistor individually is Rs 1 only. If all the resistors are replaced at the same time, the cost per resistor would be reduced to 35 paise. The percentage of surviving resistors say S(t) at the end of month t and the probability of failure P(t) during the month t are as follows: t 0 1 2 3 4 5 6 P(t) 0 0.03 0.07 0.20 0.40 0.15 0.15 What is the optimal replacement plan?
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4
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…
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…
Q: The Morton Supply Company produces clothing, footwear, and accessories for dancing and gymnastics. They produce three models of pointe shoes used by ballerinas to balance on the tips of their toes. The shoes are produced from four materials: cardstock, satin, plain fabric, and leather. The number of square inches of each type of material used in each model of shoe, the amount of material available, and the profit/model are shown below: Material (measured in square inches) Model 1 Model 2 Model 3 Material Available Cardstock 12 10 14 1200 Satin 24 20 15 2000 Plain fabric 40 40 30 7500 Leather 11 11 10 1000 Profit per model $50 $44 $40 a) Generate the Sensitivity Report in EXCEL for the model that you built. Interpret, in context, the Shadow Price for the Leather and the Satin constraints. Include units in your interpretations.
A company owns a 5-year-old turret lathe that has a book value of $23,000. The present market value for the lathe is $18,000. The expected decline in market value is $1,700/year to a minimum market value of $4,080; maintenance plus operating costs for the lathe equal $4,470/year.A new turret lathe can be purchased for $46,000 and will have an expected life of 8 years. The market value for the turret lathe is expected to equal $46,000(0.70)k at the end of year k. Annual maintenance and operating cost is expected to equal $1,900. Based on a 12% MARR, should the old lathe be replaced now? Use an equivalent uniform annual cost comparison, a planning horizon of 7 years, and the cash flow approach.EUAC for keeping old turret lathe: $EUAC for replacing turret lathe: $
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")
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