MSIS Management Science Methods
posted by Susan on .
How can I set this question up in Lindo?
Client has 800,000 that must be invested in 3 funds. 20 to 40% invested in growth fund, 20 to 50% in income fund and at least 30% in money market fund. Client has a max risk index of 0.05. Risk indicators - growth fund is 0.10, income fund is 0.07 and money market is 0.01. Portfolio risk index is computed as a weighted average of risk rating for the three funds where the weights are the fraction of the clients portfolio invested in each of the funds.
Yields are growth - 18%, income fund - 12.5% and money market - 7.5%.
I need to determine the annual % yield for each of the investments.