The Rio Credit Union has $250,000 available to invest in a 12-month commitment and wants to invest all of it. The money can be placed in Brazilian treasury notes yielding an 8% return or in riskier high-yield bonds at an average rate of return of 9%. Credit union regulations require diversification to the extent that at least 50% of the investment be placed in Treasury notes. It is also decided that no more than 40% of the investment be placed in bonds. The aim of the objective function for Rio Credit Union should be to Maximize the objective value. Decision variables: X = $ invested in Treasury notes Y = $ invested in Bonds Objective function (in decimals, eg., .07, NOT 7%): The optimal ROI occurs when: X = Y = (enter your response as a whole number). Optimal ROI value 'Z' = (enter your response as a whole number)
The Rio Credit Union has $250,000 available to invest in a 12-month commitment and wants to invest all of it. The money can be placed in Brazilian treasury notes yielding an 8% return or in riskier high-yield bonds at an average
The aim of the objective function for Rio Credit Union should be to Maximize the objective value.
Decision variables:
X = $ invested in Treasury notes
Y = $ invested in Bonds
Objective function (in decimals, eg., .07, NOT 7%):
The optimal
X =
Y =
(enter your response as a whole number).
Optimal ROI value 'Z' =
(enter your response as a whole number)
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