n the problem on excel : 1.What are the decision variables 2.What is the objective functions 3. What are the constraints and explain

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In the problem on excel : 1.What are the decision variables 2.What is the objective functions 3. What are the constraints and explain
Congratulations. You have just won $750,000 and, since you have taken ADMN2607-
Management Science with Professor Brandon Mackinnon, you have decided to use your
knowledge from all of these topics to develop a list of possible investment(s) that you will invest
all of the $750,000 that you have won.
The expected return of each of the 6 possible investments that you are considering investing in,
and their Expected Rate of Return over the next year are in the table below.
Investment
Amazon Inc (USA Shares)
Royal Bank of Canada (Canadian Shares)
Nike Inc (USA Shares)
Telus Corporation (Canadian Shares)
Snap Inc (USA Shares)
Nestle SA (Switzerland Shares)
Expected Rate
of Return
13.5%
7.4%
10.0%
6.1%
3.0%
4.8%
You remember from Finance class, that it is important to have a diversified portfolio, and
therefore have come up with the following guidelines on how to invest your money:
• The total invested in USA Shares should be at least 10% but no more then 45% of the
total amount invested.
Not more then $275,000 invested in Nestle SA
• At least $220,000 invested in a combination of the 2 Canadian Stocks.
There must be a minimum of $50,000 invested in each non-USA company.
• The amount invested in Snap Inc must equal the amount invested in Amazon Inc.
The amount in RBC is not to be more then four times greater then the amount invested in
Amazon.
Together, the amount invested in all USA shares, must not be more then the amount
invested in Nestle.
The amount invested in Nestle SA must be exactly double plus $5,000 more then Telus
Corporation.
Subject to these constraints, your goal is to maximize projected returns on your investment
portfolio. Formulate this problem on Excel and solve for the amount of money that should be
invested in each of the 5 different investments while making as high of a return as possible.
Transcribed Image Text:Congratulations. You have just won $750,000 and, since you have taken ADMN2607- Management Science with Professor Brandon Mackinnon, you have decided to use your knowledge from all of these topics to develop a list of possible investment(s) that you will invest all of the $750,000 that you have won. The expected return of each of the 6 possible investments that you are considering investing in, and their Expected Rate of Return over the next year are in the table below. Investment Amazon Inc (USA Shares) Royal Bank of Canada (Canadian Shares) Nike Inc (USA Shares) Telus Corporation (Canadian Shares) Snap Inc (USA Shares) Nestle SA (Switzerland Shares) Expected Rate of Return 13.5% 7.4% 10.0% 6.1% 3.0% 4.8% You remember from Finance class, that it is important to have a diversified portfolio, and therefore have come up with the following guidelines on how to invest your money: • The total invested in USA Shares should be at least 10% but no more then 45% of the total amount invested. Not more then $275,000 invested in Nestle SA • At least $220,000 invested in a combination of the 2 Canadian Stocks. There must be a minimum of $50,000 invested in each non-USA company. • The amount invested in Snap Inc must equal the amount invested in Amazon Inc. The amount in RBC is not to be more then four times greater then the amount invested in Amazon. Together, the amount invested in all USA shares, must not be more then the amount invested in Nestle. The amount invested in Nestle SA must be exactly double plus $5,000 more then Telus Corporation. Subject to these constraints, your goal is to maximize projected returns on your investment portfolio. Formulate this problem on Excel and solve for the amount of money that should be invested in each of the 5 different investments while making as high of a return as possible.
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