Open AccessHEURISTIC ANALYSIS OF INVESTMENT STRATEGY
Author(s) -
Sigutė Vakrinienė,
Arnoldina Pabedinskaitė
Publication year - 2006
Publication title -
technological and economic development of economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.634
H-Index - 47
eISSN - 2029-4921
pISSN - 2029-4913
DOI - 10.3846/13928619.2006.9637724
Subject(s) - profitability index , profit (economics) , investment (military) , investment strategy , task (project management) , microeconomics , linear programming , heuristic , dual (grammatical number) , economics , mathematical optimization , computer science , operations research , mathematics , finance , management , law , art , literature , political science , politics
The present article investigates the problem of optimal investment, when, given a limited amount of funds, a decision must be taken to which projects and what amounts of funds are to be invested. Supposing that the expected average profit depends on several possible different market conditions, a matrix game against nature has been selected as the initial mathematical model. With a view to develop the optimal investment strategy, a linear programming task is formulated. The sensitivity of solutions to profitability coefficients is analysed by means of formulating a dual task for this task. The present article considers the stability and dynamics of the optimum investment strategy given a varying amount of the funds allocated to investment and the profitability of specific projects.
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