Chapter 6. Crypt-Me-Not Investments, Inc. is a new investment firm that deals exclusively with cryptocurrency investments. An investor wants to invest $100,000 in cryptocurrency next year and approaches them about investing in Solana (SOL) and Dogecoin (DOGE) which are currently selling at $175 and $0.50, respectively. The expected annual return on each unit of SOL is $180 and on each unit of DOGE is $100 and like everyone else, the investor wants to maximize their returns. The risk index associated with each unit of SOL is 1.6 and with each unit of DOGE is 1.8. Crypt-Me-Not recommends not crossing a total risk value of 5000 with the client's investments. Moreover, since DOGE is substantially cheaper and less risky than SOL, the investor insists that a minimum of 1,000 units of DOGE in the portfolio is necessary. Based on these constraints, formulate a Linear Program and answer the following questions after solving it using Solver in Excel (Round up to the next whole number for first three answers). 1. The optimal number of Solana coins purchased is and the number of Dogecoins is 2. The annual maximized returns on this $100,000 investment are expected to be $ 3. Looking at the sensitivity report, the shadow price for Funds Available is (two decimal places) and for Risk Index is (two decimal places).
Chapter 6. Crypt-Me-Not Investments, Inc. is a new investment firm that deals exclusively with cryptocurrency investments. An investor wants to invest $100,000 in cryptocurrency next year and approaches them about investing in Solana (SOL) and Dogecoin (DOGE) which are currently selling at $175 and $0.50, respectively. The expected annual return on each unit of SOL is $180 and on each unit of DOGE is $100 and like everyone else, the investor wants to maximize their returns. The risk index associated with each unit of SOL is 1.6 and with each unit of DOGE is 1.8. Crypt-Me-Not recommends not crossing a total risk value of 5000 with the client's investments. Moreover, since DOGE is substantially cheaper and less risky than SOL, the investor insists that a minimum of 1,000 units of DOGE in the portfolio is necessary. Based on these constraints, formulate a Linear Program and answer the following questions after solving it using Solver in Excel (Round up to the next whole number for first three answers). 1. The optimal number of Solana coins purchased is and the number of Dogecoins is 2. The annual maximized returns on this $100,000 investment are expected to be $ 3. Looking at the sensitivity report, the shadow price for Funds Available is (two decimal places) and for Risk Index is (two decimal places).
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:Chapter 6. Crypt-Me-Not Investments, Inc. is a new investment fırm that deals exclusively with cryptocurrency investments. An investor wants to invest $100,000 in cryptocurrency next year and approaches them
about investing in Solana (SOL) and Dogecoin (DOGE) which are currently selling at $175 and $0.50, respectively. The expected annual return on each unit of SOL is $180 and on each unit of DOGE is $100 and like
everyone else, the investor wants to maximize their returns. The risk index associated with each unit of SOL is 1.6 and with each unit of DOGE is 1.8. Crypt-Me-Not recommends not crossing a total risk value of 5000
with the client's investments. Moreover, since DOGE is substantially cheaper and less risky than SOL, the investor insists that a minimum of 1,000 units of DOGE in the portfolio is necessary. Based on these constraints,
formulate a Linear Program and answer the following questions after solving it using Solver in Excel (Round up to the next whole number for fırst three answers).
1. The optimal number of Solana coins purchased is
and the number of Dogecoins is
2. The annual maximized returns on this $100,000 investment are expected to be $
3. Looking at the sensitivity report, the shadow price for Funds Available is
(two decimal places) and for Risk Index is
(two decimal places).
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