In-class Example from Carlton Collins - Solver r1

In-class Example from Carlton Collins - Solver r1 -...

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Solver Example - Portfolio Management to Maximize Resultant Return Blue Chip Stocks 6.00% 1.00% 300,000 16.7% 18,000 3,000 321,000 Growth Stocks 0.00% 12.00% 300,000 16.7% - 36,000 336,000 Speculation Stocks 0.00% 12.00% 300,000 16.7% - 36,000 336,000 Checking Account 2.20% 0.00% 300,000 16.7% 6,600 - 306,600 Real Estate -4.00% 12.00% 300,000 16.7% (12,000) 36,000 324,000 Mutual Fund 5.00% 0.00% 300,000 16.7% 15,000 - 315,000 1,800,000 100.0% 27,600 111,000 1,938,600 Objective is to Diversify Investments and Maximize Projected Total (K11) Meet this objective by varying each investment percentage of the total investment (which must equal 100%) Checking Account must have at least $100,000
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Unformatted text preview: Checking Account should be no more than $150,000 NOTE: When entered in constraints, percentage values must be entered as decimals, e.g. for 25%, enter .25 Speculation stocks must be no more than 10% of portfolio Blue Chip Stocks must be at least 25% of portfolio Blue Chip Stocks can be no more than 35% of portfolio Mutual funds must be no more than 10% of portfolio Real Estate must be at least 25% of portfolio Total Percentage of Investment must equal 100% (entered as 1.0) Annual Earnings Rate Annual Growth Rate Amount of Investment Percentage Investment Annual Earnings Rate Annual Growth Rate Projected Total...
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This note was uploaded on 03/02/2011 for the course BMGT 301 taught by Professor Wang during the Spring '08 term at Maryland.

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