Bob and Dora Sweet Wish to Start Investing $1,000 Each

question 17

Essay

Bob and Dora Sweet wish to start investing $1,000 each month.The Sweets are looking at five investment plans and wish to maximize their expected return each month.Assume interest rates remain fixed and once their investment plan is selected they do not change their mind.The investment plans offered are:
Fidelity 9.1% return per year
Optima 16.1% return per year CaseWay 7.3% return per year Safeway 5.6% return per year
National 12.3% return per year
Since Optima and National are riskier,the Sweets want a limit of 30% per month of their total investments placed in these two investments.Since Safeway and Fidelity are low risk,they want at least 40% of their investment total placed in these investments.
Formulate the LP model for this problem.

Understand the role of management science and quantitative approaches in modern management.

Recognize the importance of adapting management practices to meet the diverse needs of individuals and achieve productivity.

Understand the attributes of performance excellence according to Peters and Waterman.

Recognize the significance of the value chain in transforming raw materials into finished goods or services.

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Definitions:

Statement of Claim

A legal document filed in court that outlines the plaintiff's allegations against the defendant and the legal basis for the lawsuit.

Civil and Criminal Actions

Civil and criminal actions refer to the two main categories of law where civil actions deal with disputes between individuals or entities, and criminal actions involve cases brought by the state against individuals or entities for acts against society.

Convicted of a Criminal Offence

Found legally guilty of violating criminal law.

Compensated for Injury

Receiving payment or restitution for physical or psychological harm suffered due to another's negligence or wrongdoing.