Shares
What's shares ?
Ownership of a company
What is mutual funds ?
A collection of stock and /or bonds
What is lpp?
Linear programming problem in maths is system process of finding a maximum or minimum value of any variable in a function, it is also known by the name of optimization problem.
Types of shares ?
(1).Equity shares
(2).preference shares
What is the return on a money market account?
Double that of a checking /saving account.
Characteristics of linear programming
Constraints
Objective function
Linearity
Finiteness
Non negativity
Values of shares?
The original value of shares printed in the certificate of the share is called its face value or nominal value .
FORMULA FOR NAV
NET ASSET VALUE =current value all assets -liabilities /total no. Of units
Calculate the maximal and minimal value of z=5x +3y for the following constraints .
X+2y<14
3x-y>0
X-y <2
The maximum of z=42 lies at (6,4)and the minimum of z=-14 lies at (-1-3)
Formula for shares ?
Sum invested = no.of shares bought ×NV of 1 shares
Which brokerage for buying and selling the mutual fund.
1)Entry load
2)Exit load
Components of linear programming?
Decision variables
Constraints
Data
Objective functions
Example :- calculate the money required to buy, 350 Rs 20 shares at a premium of Rs 7.
Answers:-no of shares =350
Nv=Rs20
Mv=Rs(20+7)=Rs27
Money required to buy 350 shares = Rs(350×27),=Rs9450
Entry and exit load formula
Actual price of mutual fund =N.A.V +Entry load or exit load per share
Let x and y be the number of cabinets of types 1 and 2 respectively that he must manufacture. They are non-negative and known as non-negative constraints.
The company can invest a total of 540 hours of the labour force and is required to create up to 50 cabinets. Hence,
15x + 9y <= 540
x + y <= 50
The above two equations are known as linear constraints.
Let Z be the profit he earns from manufacturing x and y pieces of the cabinets of types 1 and 2. Thus,
Z = 5000x + 3000y
Our objective here is to maximize Z. Hence Z is known as the objective function. To find the answer to this question, we use graphs, which is known as the graphical method of solving LPP. We will cover this in the subsequent sections.