Solve the LP problem. If no optimal solution exists, indicate whether the feasible region is empty or the objective function is unbounded. HINT [See Example 1.] (Enter EMPTY if the region is empty. Enter UNBOUNDED if the function is unbounded.) Maximize and minimize p = x + 2y subject to x + y ≥ 4 x + y ≤ 10 x − y ≤ 4 x − y ≥ −4.

Q: Consider the following linear programming model: Maximize: 5A + 6B with the following constraints:…

A: We will put the values of corner point (X,Y) in  A and B in constraints , then find out the…

Q: What is the critical path in the PERT method for network analysis?a. shortest path through the…

A: Critical Path: The critical path can be defined as the order of network activities involved in a…

Q: The NPV of the replacement is $        ?

A: Net present value is the difference of discounted cash inflows and outflows.

Q: Which of the following is false of the historical VaR?  a. It is based on normal distribution of…

A: Ans. Historical VaR do makes use of Monte Carlo Simulation.

Q: The slope of the characteristic line of a security is that security's Beta. Select one: O True O…

A: Stock refers to the smallest unit of the total number of shares that are being issued by the public…

Q: Provide an example of a “good” externality, that is, one that increases a project’strue NPV.

A: The question is based on the concept of externality in project management. Externality is define as…

Q: Briefly explain two measures that can be used in narrowing down the expectation gap

A: Ans. The audit expectation gap is defined as the difference between what the public expects from an…

Q: What is the Black Scholes Model?

A: Black Scholes Model is an option pricing model.

Q: What happens when N (d2) of the Black Scholes Morten Model is in the negative figure? What does this…

A: Following a lengthy search by financial economists for a viable option-pricing model. A formula for…

Q: 6, calculate the net present value (NPV) and indicate whether to accept or reject the machine.

A: Calculation of NPV using Excel Function: Excel Spreadsheet:

Q: Can you have an investment with DCFRR > MARR, but NPV < $0 (calculating NPV with iry=MARR)?

A: 1. The first investment is not profitable  2. The second investment is profitable 3. The third…

Q: Explain about the Black–Scholes model.

A: Black Scholes option pricing model is probably the most commonly used option pricing model in…

Q: Why is the NPV preferred over the IRR?

A: Net Present Value is a method of finding the profitability of a project by discounting future cash…

Q: A project with a negative NPV should be rejected. O True O False

A: Net present value  = present value of future cash inflows discounted at desired rate of return -…

Q: Briefly explain two measures which can be used in narrowing down the expectation gap

A: Expectation gap is the term which is defined as the gap among the users of assurance reports…

Q: Is an higher NPV better than a lower NPV and why?

A: The net present value is the difference between sums of the present value of cash inflows and…

Q: Develop an integer programming model to maximize the NPV in this situation. Use excel to solve this…

A: NPV stands for net present value. It is an important capital budgeting tool that we use to analyze…

Q: For the feasible set in the figure to the right, determine x and y so that the objective function 4x…

A: Given: Objective function: 4 x+6 y Line intersects at 2 points: (25,0) , (0,25)

Q: Consider the following utility function: u = 400 (1 + 1)−1. xy a. Is this utility function…

A: Solution-

Q: Elaborate/Explain Integer Linear Optimization and give example

A: Answer:- Integer linear optimization is a further version of linear programming where the condition…

Q: Enter a T if the statement is true and F if it is false. Explain your choice. i) The solution u to…

A: Black scholes method is a method used to calculate the call option as well as put option price.

Q: When we perform sensitivity analysis for mutually exclusive alternatives, itmay be more effective to…

A: Net present worth is acknowledged as the current worth or value of a project which is adjusted as…

Q: A project with a low coefficient of variation means its risk is very high. Select one: O a. TRUE O…

A: 1.  The cofficient of variation (CV) is a statistical measure of the standard deviation to the mean.…

Q: What does an exponential model look like? Explain what all of the pieces are?

A:

Q: ple of when one would choose to use the Payback Period Method instead of the NPV / IRR me

A: Step 1 One of the most important decisions a business owner or management team will ever make is to…

Q: The most popular method used to calculate VaR is: Group of answer choices B. Parametric VaR D.…

A: VAR is the value at risk. It is used to calculate the maximum amount of loss from a portfolio for a…

Q: What primarily motivates the use of the Modified IRR (MIRR)? Group of answer choices  1) The…

A: Internal Rate of Return (IRR) it is discount rate that brings about equality between the present…

Q: Do NPV and IRR always yield the same conclusion (accept or reject a project)? If not, when do they…

A: Net Present Value is the difference between present value of cash inflows and present value of cash…

Q: Which one of the following statements is correct? a. If NPV is positive, IRR will be less than…

A: In order to determine the Net present value, the initial cash outflows is required to be subtracted…

Q: when NPV is greater than zero the PI will be greater than zero, greater than one, less than one, or…

A: Net present value NPV is a technique used in capital budgeting for evaluating the project's…

Q: When we work with the breakeven point, how important is it to understand what a decision variable…

A: The question is related to Marginal Costing. The break-even point is that level of sales at which…

Q: In a maximal flow problem, a.the flow out of a node is less than the flow into the node. b.the…

A: In a maximal flow problem the number of arcs entering a node is equal to the number of arcs exiting…

Q: What are the advantage  of the scattergraph method over the high-low method? The high-low method…

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: True /False   Could you please explain the reason   In relation to a minimization problem, the z…

A: True, the z value for the candidate solution obtained from a sub problem of the b&amp;b problem.

Q: Many decision problems have the following simple structure. A decision maker has two possible…

A: A)-      Consider a generlised decision decision maker,s problem.the cecision maker has to…

Q: a. Are there Nash equilibria? If so, determine how many and state which strategies.

A: Yes, there are Nash equilibrium.

Q: Does it matter which beta is used, and if so, whichis best?

A: Beta value: It is the ratio of the volatility of a stock to that of the reference index. For Beta…

Q: Charlie's Indifference curves have the equation y constant/x, where larger constants correspond to…

A: Y = constant/X Constant = Y*X Where constant shows utility, thus Utility = X*Y (5,13)=&gt; utility =…

Q: Consider the following four statements about value at risk (VaR): The choice of VaR confidence…

A: It leads to the problem with the usage of VaR in the practice. The uniformity of practice is not…

Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.