"> (Answered) QUESTION 1 Jeff is willing to invest $5000 in buying shares and bonds of a company to gain maximum returns. From his past experience, he estimates... - Tutorials Prime

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(Answered) QUESTION 1 Jeff is willing to invest $5000 in buying shares and bonds of a company to gain maximum returns. From his past experience, he estimates...


QUESTION 1 Jeff is willing to invest $5000 in buying shares and bonds of a company to gain maximum returns. From his past experience, he estimates...


HiThis is Amanpreet Singh , I have three question related to QANT 620 (Multiple Criteria and Decision Model). what I have give to the professor in excel. Please check the question and how much cost you will charge and I need asap. Thanking RegardsAmanpreet SinghEmail ID - [email protected]QUESTION 1

 

Jeff is willing to invest $5000 in buying shares and bonds of a

 

company to gain maximum returns. From his past experience,

 

he estimates the relationship between returns and investments

 

made in this company to be:

 

where,

 

R

 

= total returns in thousands of dollars

 

S

 

= thousands of dollars spent on Shares

 

B

 

= thousands of dollars spent on Bond

 

Jeff would like to develop a strategy that will lead to

 

maximum return subject to the restriction provided on amount

 

available for investment.

 

a.

 

What is the value of return if $3,000 is invested in shares

 

and $2,000 is invested bonds of the company?

 

b.

 

Formulate an optimization problem that can be solved to

 

maximize the returns subject to investing no more than

 

$5,000 on both share and bonds.

 

c.

 

Determine the optimal amount to invest in shares and

 

bonds of the company. How much return will Jeff gain?

 

Round all your answers to two decimal places.

 

QUESTION 2

 

Consider the objective function,

 

where,

 

Y

 

=

 

total output

 

A

 

=

 

total-factor productivity

 

L =

 

labor input

 

K=

 

capital input

 

á =

 

capital input share of contribution for

 

L

 

â

 

= capital input share of contribution for

 

K

 

a.

 

Assume

 

á = 0.33, â

 

= 0.67,

 

A

 

= 10 and each unit of labor

 

costs $45 and each unit of capital costs $55. With $50,000

 

available in the budget, develop an optimization model to

 

determine the number of units of capital and labor required in

 

order to maximize output.

 

b.

 

Find the optimal solution to the model you formulated in

 

part a. Round all your answers to two decimal places. (Hint:

 

When using Excel Solver, use the Multistart option with

 

bounds 0 £

 

L

 

£ 700 and 0 £

 

K

 

£ 1000.)

 


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DATE ANSWERED

Jan 02, 2020

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