5.PT. PLN has $140000 to invest. The alternative investments and the corresponding annual returns are SUN (8.5%), CDs (5%), T-bills (6,5%) and stocks (13%). PT PLN wants to maximize the investment return. The following guidelines have been established for diversifying the investments and lessening the risk : A.No more than 30% of total investment should be in SUN B.The amount invested in the CDs should not exceed the amount in the other 3 alternatives C.At least 40% of the investment should be in T-bills and CDs D. To be safe, more should be invested in CDs and T-bills than in SUN and the stocks, by a ratio a least 1,2 to 1. Formulate the LP model for PT. PLN

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
icon
Related questions
icon
Concept explainers
Topic Video
Question
5.PT. PLN has $140000 to invest. The alternative investments and the corresponding annual
returns are SUN (8.5%), CDs (5%), T-bills (6,5%) and stocks (13%). PT PLN wants to
maximize the investment return.
The following guidelines have been established for diversifying the investments and lessening
the risk :
A.No more than 30% of total investment should be in SUN
B.The amount invested in the CDs should not exceed the amount in the other 3 alternatives
C.At least 40% of the investment should be in T-bills and CDs
D. To be safe, more should be invested in CDs and T-bills than in SUN and the stocks, by a
ratio a least 1,2 to 1.
Formulate the LP model for PT. PLN
Transcribed Image Text:5.PT. PLN has $140000 to invest. The alternative investments and the corresponding annual returns are SUN (8.5%), CDs (5%), T-bills (6,5%) and stocks (13%). PT PLN wants to maximize the investment return. The following guidelines have been established for diversifying the investments and lessening the risk : A.No more than 30% of total investment should be in SUN B.The amount invested in the CDs should not exceed the amount in the other 3 alternatives C.At least 40% of the investment should be in T-bills and CDs D. To be safe, more should be invested in CDs and T-bills than in SUN and the stocks, by a ratio a least 1,2 to 1. Formulate the LP model for PT. PLN
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Application of Algebra
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, advanced-math and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
Basic Technical Mathematics
Basic Technical Mathematics
Advanced Math
ISBN:
9780134437705
Author:
Washington
Publisher:
PEARSON
Topology
Topology
Advanced Math
ISBN:
9780134689517
Author:
Munkres, James R.
Publisher:
Pearson,