Use This Information to Answer the Following Questions -Use the Sensitivity Report to Answer the Following Questions:
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question 17

Essay

Use this information to answer the following questions.
An investment company currently has $1 million available for investment in five different stocks.The company wants to maximize the interest earned over the next year.The five investment possibilities along with the expected interest earned are shown below.To manage risk,the investment firm wishes to have at least 35% of the investment in stocks A and B.Furthermore,no more than 15% of the investment may be in stock E.
$$\begin{array} { l c } \text { Investment } & \text { Expected Interest Earned (\%) } \\\text { Stock A } & 7 \\\text { Stock B } & 9 \\\text { Stock C } & 8 \\\text { Stock D } & 10 \\\text { Stock E } & 11\end{array}$$

-Use the Sensitivity Report to answer the following questions:
a.Suppose that the amount of money available for investment increases by $50,000.What impact would this have on the current optimal objective function value?
b.Suppose that total investment in stocks A and B must be at least 40% of the total amount available for investment (i.e. ,$400,000).What impact would this have on the current optimal objective function value?
c.Suppose that the total investment in stocks A and be must be at least 30% of the total amount available for investment.What impact would this have on the current optimal objective function value?
d.Assume that no more than 30% of the investment may be in stock E.What impact would this have on the current optimal objective function value?

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Definitions:

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, or other verbal or physical harassment of a sexual nature.

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Physical activities undertaken to maintain or improve health and fitness.

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Individuals in the age group that follows adolescence, typically ranging from 18 to 25 years old, characterized by further development of personal and economic independence.

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A physical or psychological response to internal or external pressures, resulting in mental and physical symptoms ranging from discomfort to severe health issues.