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Excel Report: Welte Mutual Funds Problem Solution and Sensitivity Analysis, Assignments of Quantitative Techniques

The solution and analysis of the welte mutual funds problem using microsoft excel's solver, sensitivity report, and limits report. The problem involves optimizing the investment in various mutual funds, including atlantic oil, pacific oil, midwest steel, huber steel, and gov't bonds, to maximize the total return within the given constraints. The report includes the final values of the variable cells, constraint multipliers, and objective function limits.

Typology: Assignments

2020/2021

Uploaded on 10/18/2021

neeti-mehta
neeti-mehta 🇮🇳

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Microsoft Excel 16.0 Answer Report
Worksheet: [Welte.xlsx]Model
Report Created: 04-10-2021 14:15:21
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: GRG Nonlinear
Solution Time: 0.016 Seconds.
Iterations: 0 Subproblems: 0
Solver Options
Max Time 100 sec, Iterations 100, Precision 0.00000001
Convergence 0.0001, Population Size 100, Random Seed 0, Derivatives Forward, Require Bounds
Max Subproblems 5000, Max Integer Sols 5000, Integer Tolerance 5%, Assume NonNegative
Objective Cell (Max)
Cell Name Original Value Final Value
$B$20 Max Total Return Amount Invested 8,000.008,000.00
Variable Cells
Cell Name Original Value Final Value Integer
$B$14 Atlantic Oil Amount Invested 20,000.0020,000.00Contin
$B$15 Pacific Oil Amount Invested 30,000.0030,000.00Contin
$B$16 Midwest Steel Amount Invested 0.000.00Contin
$B$17 Huber Steel Amount Invested 40,000.0040,000.00Contin
$B$18 Gov't Bonds Amount Invested 10,000.0010,000.00Contin
Constraints
Cell Name Cell Value Formula Status Slack
$B$23 Total Funds Invested 100,000.00$B$23=$C$23 Binding 0
$B$26 Oil Funds Invested 50,000.00$B$26<=$C$26 Binding 0
$B$27 Steel Funds Invested 40,000.00$B$27<=$C$27 Not Binding 10000
$B$28 Pacific Oil Funds Invested 30,000.00$B$28<=$C$28 Binding 0
$B$31 Gov't Bonds Funds Invested 10,000.00$B$31>=$C$31 Binding 0.00
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Microsoft Excel 16.0 Answer Report Worksheet: [Welte.xlsx]Model Report Created: 04-10-2021 14:15: Result: Solver found a solution. All Constraints and optimality conditions are satisfied. Solver Engine Engine: GRG Nonlinear Solution Time: 0.016 Seconds. Iterations: 0 Subproblems: 0 Solver Options Max Time 100 sec, Iterations 100, Precision 0. Convergence 0.0001, Population Size 100, Random Seed 0, Derivatives Forward, Require Bounds Max Subproblems 5000, Max Integer Sols 5000, Integer Tolerance 5%, Assume NonNegative Objective Cell (Max) Cell Name Original Value Final Value $B$20 Max Total Return Amount Invested ₹8,000.00 ₹8,000. Variable Cells Cell Name Original Value Final Value Integer $B$14 Atlantic Oil Amount Invested ₹20,000.00 ₹ 20,000.00Contin $B$15 Pacific Oil Amount Invested ₹30,000.00 ₹ 30,000.00Contin $B$16 Midwest Steel Amount Invested ₹ 0.00 ₹0.00 Contin $B$17 Huber Steel Amount Invested ₹40,000.00 ₹ 40,000.00Contin $B$18 Gov't Bonds Amount Invested ₹10,000.00 ₹ 10,000.00Contin Constraints Cell Name Cell Value Formula Status Slack $B$23 Total Funds Invested ₹100,000.00 $B$23=$C$23 Binding 0 $B$26 Oil Funds Invested ₹50,000.00 $B$26<=$C$26 Binding 0 $B$27 Steel Funds Invested ₹40,000.00 $B$27<=$C$27 Not Binding 10000 $B$28 Pacific Oil Funds Invested ₹30,000.00 $B$28<=$C$28 Binding 0 $B$31 Gov't Bonds Funds Invested ₹10,000.00 $B$31>=$C$31 Binding ₹0.

Microsoft Excel 16.0 Sensitivity Report Worksheet: [Welte.xlsx]Model Report Created: 04-10-2021 14:15: Variable Cells Final Reduced Cell Name Value Gradient $B$14 Atlantic Oil Amount Invested 20000 0 $B$15 Pacific Oil Amount Invested 30000 0 $B$16 Midwest Steel Amount Invested 0 -0. $B$17 Huber Steel Amount Invested 40000 0 $B$18 Gov't Bonds Amount Invested 10000 0 Constraints Final Lagrange Cell Name Value Multiplier $B$23 Total Funds Invested 100000 0. $B$26 Oil Funds Invested 50000 0. $B$27 Steel Funds Invested 40000 0 $B$28 Pacific Oil Funds Invested 30000 0. $B$31 Gov't Bonds Funds Invested 10000 -0.

Welte Mutual Funds Problem

Parameters

Investment

Atlantic Oil 0.073 Available Funds $100,000.

Pacific Oil 0.103 Oil Max $50,000.

Midwest Steel 0.064 Steel Max $50,000.

Huber Steel 0.075 Pacific Oil Max 0.

Gov't Bonds 0.045 Gov't Bonds Min 0.

Model

Investment Amount Invested

Atlantic Oil $20,000.

Pacific Oil $30,000.

Midwest Steel $0.

Huber Steel $40,000.

Gov't Bonds $10,000.

Max Total Return $8,000.

Projected Rate of

Return

A B C D E