An Investment Decision in a Life Insurance Company

Published Online:https://doi.org/10.1287/mantech.1.3.24

The paper shows the development of the after-tax earnings from interest as a function of the proportion of money invested in each type of security and certain other parameters such as the interest yields and the tax rate. This function is then differentiated and the optimum point determined. A procedure is provided for computing the optimum proportion.

Management Technology, ISSN 0542-4917, was published as a separate journal from 1960 to 1964. In 1965 it was merged into Management Science.

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