A brokerage firm has been tasked with investing $750,000 for a new client. The client has asked that the broker select promising stocks and bonds for investment, subject to the following guidelines: at least 10% in municipal bonds, at least 20% each in real estate and pharmaceutical stock, and at least 30% in a combination of energy and domestic automobile stocks with each accounting for at least 15%. The returns are as follows: Municipal = 6.5%, Domestic Automobile = 7.9%, Energy = 5.1%, Pharmaceuticals = 8.4% and Real Estate = 6.3%. a) Write a linear program complete with objective function and all constraints to Maximize the return. b) What is the optimal solution? Give values for all variables rounded to the nearest cent. c) How much annual income does the optimal solution generate?
A brokerage firm has been tasked with investing $750,000 for a new client. The client has asked that the broker select promising stocks and bonds for investment, subject to the following guidelines: at least 10% in municipal bonds, at least 20% each in real estate and pharmaceutical stock, and at least 30% in a combination of energy and domestic automobile stocks with each accounting for at least 15%. The returns are as follows: Municipal = 6.5%, Domestic Automobile = 7.9%, Energy = 5.1%, Pharmaceuticals = 8.4% and Real Estate = 6.3%. a) Write a linear program complete with objective function and all constraints to Maximize the return. b) What is the optimal solution? Give values for all variables rounded to the nearest cent. c) How much annual income does the optimal solution generate?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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A brokerage firm has been tasked with investing $750,000 for a new client. The client has
asked that the broker select promising stocks and bonds for investment, subject to the following
guidelines: at least 10% in municipal bonds, at least 20% each in real estate and pharmaceutical
stock, and at least 30% in a combination of energy and domestic automobile stocks with each
accounting for at least 15%. The returns are as follows: Municipal = 6.5%, Domestic Automobile
= 7.9%, Energy = 5.1%, Pharmaceuticals = 8.4% and Real Estate = 6.3%.
asked that the broker select promising stocks and bonds for investment, subject to the following
guidelines: at least 10% in municipal bonds, at least 20% each in real estate and pharmaceutical
stock, and at least 30% in a combination of energy and domestic automobile stocks with each
accounting for at least 15%. The returns are as follows: Municipal = 6.5%, Domestic Automobile
= 7.9%, Energy = 5.1%, Pharmaceuticals = 8.4% and Real Estate = 6.3%.
a) Write a linear program complete with objective function and all constraints to Maximize the
return.
b) What is the optimal solution? Give values for all variables rounded to the nearest cent.
c) How much annual income does the optimal solution generate?
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