Chapter 37: Analyzing Data Using Goal Seeking and Solver
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l (^) Car loans should make up at least 15 percent of the portfolio. This constraint is repre-
sented as
D14>=.15
l Unsecured loans should make up no more than 25 percent of the portfolio. This con-
straint is represented as
E8<=.25
l (^) At least 10 percent of the portfolio should be in bank CDs. This constraint is represented as:
E9>=.10
l (^) The total amount invested is $5,000,000.
l All investments should be positive or zero. In other words, the problem requires five addi-
tional constraints to ensure that none of the changing cells goes below zero.
The changing cells are C5:C9, and the goal is to maximize the total yield in cell D12. Starting val-
ues of 1,000,000 have been entered in the changing cells. When you run Solver with these param-
eters, it produces the solution shown in Figure 37.16, which has a total yield of 9.25 percent.
FIGURE 37.16
The results of the portfolio optimization.