Management Development Institute

Document Type
3 pages
Word Count
661 words
Course Code
Management Development Institute, Gurgaon
Programme: Post Graduate Programme in Management
Course: Management Science Models
Batch: 2021-23 Term:II
End-Term Assignment Maximum Marks: 10
Instructions for Students:
1. There are five questions in all.
2. All questions are to be solved using Excel-Solver.
3. All questions carry equal marks.
4. The assignment is a group assignment. Any group will be randomly called upon to solve any of
the problems in class using Excel Solver.
Question 1 :
Let us assume you have inherited Rs.1,00,000 from your father-in-law that can be invested in a
combination of only two stock portfolios, with a maximum investment allowed in either portfolios at
Rs.75,000. The first portfolio has an average rate of return of 10%, whereas the second has 20%. In
terms of risk factors associated with these portfolios, the first has a risk rating of 4 (on a scale of 0 to
10), and the second has 9. Since you wish to maximize your return, you will not accept on average rate
of return below 12% or an average risk factor above 6. How much should you invest in each portfolio to

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