A Financial Planner Wants to Design a Portfolio of Investments

question 88

Essay

A financial planner wants to design a portfolio of investments for a client. The client has $400,000 to invest and the planner has identified four investment options for the money. The following requirements have been placed on the planner. No more than 30% of the money in any one investment, at least one half should be invested in long-term bonds which mature in six or more years, and no more than 40% of the total money should be invested in B or C since they are riskier investments. The planner has developed the following LP model based on the data in this table and the requirements of the client. The objective is to maximize the total return of the portfolio. ​
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What formulas are required for the following cells in the Excel spreadsheet implementation of the formulation?
B7
D7
F7
H7

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Definitions:

Weight-to-Volume Ratio

A measurement indicating how much weight occupies a certain volume, important in fields like shipping and material science.

Value-to-Weight Ratio

A measure that compares the value of a product to its weight, often used in shipping and trade to determine the cost-effectiveness of transporting goods.

Supply-Chain Members

Businesses or entities involved in the process of producing and delivering a product or service, from raw material suppliers to manufacturers to retailers and finally to end consumers.

Environmentally Friendly

Practices, products, or services that cause minimal harm to the environment and are considered beneficial for ecological sustainability.