Linear Programming and Its Application Techniques in Optimizing Portfolio Selection of a Firm

Table 3

The sensitivity analysis results of the portfolios in linear programming.

Types of investment	Normal interest rate (%)	5% reduction		5% increment		Investment without treasury bill		Risk score (%)
		%	Output	%	Output	%	Output
Fixed deposit	12.0	11.4	2,399,800	12.5	1,808,032	12.0	3,000,000	1.0
Treasury bills	17.0	16.15	1,874,300	18.0	3,674,300	17.0	3,000,000	2.0
Crude oil	17.0	16.71	2,129,800	18.0	1,974,300	13.0	2,700,000	1.0
Mortgage	13.0	12.95	2,207,320	13.65	813,768	21.0	3,000,000	1.0
Construction	21.0	19.95	1,013,480	22.05	3,155,800	10.0	3,300,000	2.0
Cashew nuts	10.0	9.5	2,674,800	10.5	1,674,800	—	—	1.0
Forex trading	10.0	9.5	2,700,500	10.5	1,900,000	—	—	2.0
Maximum return			2,170,132		2,983,096		1,895,092