Initializing help system before first use

Introducing the Example Business Problem

All models start off with a problem to be solved—in this case, we are going to be working with and extending a portfolio optimization problem introduced in Getting Started with Xpress, part of the Xpress documentation set.

Stating the problem:

An investor wishes to invest a certain amount of money. Ten different share types and their countries of origin are being evaluated for the investment. The percentage return on investment (ROI) for each share type over a period of one year has been estimated. The following table contains the details of each share type, its country of origin, its risk category (R: high risk, N: low risk) and the expected ROI.
Number Description Country of Origin Risk ROI (percentage)
1 Treasury Canada N 5
2 Hardware NA (North America) R 17
3 Theater NA R 26
4 Telecom NA R 12
5 Brewery UK N 8
6 Highways France N 9
7 Cars Germany N 7
8 Bank Luxemburg N 6
9 Software India R 31
10 Electronics Japan R 21
The investor specifies certain constraints. To spread the risk, no more than 30% of the capital will be invested into any individual share type, with at least half of the capital in North American shares, and at most one third in high-risk shares.

How should the capital be divided among the share types to obtain the highest expected ROI? The tutorial will demonstrate how to use Mosel to model the business problem. Later chapters will use this file to create a custom user interface.

Parent Topic Building a Basic Xpress Insight App

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