You have a new job as a Financial Planning assistant. Your client wants to invest money in stocks, bonds, and treasuries that have the dividend yields shown in the table below. Your job is to allocate their money across these three investments such that the total dollars of bonds plus treasuries equals the total dollars of stocks. In addition, they have identified the maximum investment in each of those three investment types (also shown below). Maximize the dividends earned. Your answer will be the total dollars to be invested in Treasuries (rounded to whole dollars). Scenario 1 Stocks: yield % 1.65 Bonds: yield % 3.04 Treasuries: yield % 1.95 Stocks: $ max 70,000 Bonds: $ max 60,000 Treasuries: $ max 25,000
You have a new job as a Financial Planning assistant. Your client wants to invest money in stocks, bonds, and treasuries that have the dividend yields shown in the table below. Your job is to allocate their money across these three investments such that the total dollars of bonds plus treasuries equals the total dollars of stocks. In addition, they have identified the maximum investment in each of those three investment types (also shown below). Maximize the dividends earned. Your answer will be the total dollars to be invested in Treasuries (rounded to whole dollars). Scenario 1 Stocks: yield % 1.65 Bonds: yield % 3.04 Treasuries: yield % 1.95 Stocks: $ max 70,000 Bonds: $ max 60,000 Treasuries: $ max 25,000
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter5: Network Models
Section: Chapter Questions
Problem 72P
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Question
You have a new job as a Financial Planning assistant. Your client wants to invest money in stocks, bonds, and treasuries that have the dividend yields shown in the table below. Your job is to allocate their money across these three investments such that the total dollars of bonds plus treasuries equals the total dollars of stocks. In addition, they have identified the maximum investment in each of those three investment types (also shown below). Maximize the dividends earned.
Your answer will be the total dollars to be invested in Treasuries (rounded to whole dollars).
| Scenario 1 | |
| Stocks: yield % | 1.65 |
| Bonds: yield % | 3.04 |
| Treasuries: yield % | 1.95 |
| Stocks: $ max | 70,000 |
| Bonds: $ max | 60,000 |
| Treasuries: $ max | 25,000 |
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