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Formulate a linear programming problem that can be used to solve the following question. Suppose for an investment no more than $11,000 is placed in three mutual funds with annual returns of 4%, 8%, and 11%, respectively. The investor requires an annual return of at least $770 and wishes to minimize the risk. The second mutual fund is twice as risky as the first, and the third is 4 times as risky as the first. How should the money be allocated to minimize the risk? Let risk = x1 + 2x2 + 4x3. x1 = amount of money in dollars invested in the first fund x2 = amount of money in dollars invested in the second fund x3 = amount of money in dollars invested in the third fund     F =        (objective function) Subject to       (dollars available)         (total investment return)   x1        0, x2        0, x3        0

Formulate a linear programming problem that can be used to solve the following question. Suppose for an investment no more than $11,000 is placed in three mutual funds with annual returns of 4%, 8%, and 11%, respectively. The investor requires an annual return of at least $770 and wishes to minimize the risk. The second mutual fund is twice as risky as the first, and the third is 4 times as risky as the first. How should the money be allocated to minimize the risk? Let risk = x1 + 2x2 + 4x3. x1 = amount of money in dollars invested in the first fund x2 = amount of money in dollars invested in the second fund x3 = amount of money in dollars invested in the third fund     F =        (objective function) Subject to       (dollars available)         (total investment return)   x1        0, x2        0, x3        0

College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter6: Linear Systems
Section6.8: Linear Programming
Problem 21E: Making furniture Two woodworkers, Chase and Devin, get 100 for making a table and 80 for making a...
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Formulate a linear programming problem that can be used to solve the following question.

Suppose for an investment no more than $11,000 is placed in three mutual funds with annual returns of 4%, 8%, and 11%, respectively. The investor requires an annual return of at least $770 and wishes to minimize the risk. The second mutual fund is twice as risky as the first, and the third is 4 times as risky as the first. How should the money be allocated to minimize the risk? Let risk = x1 + 2x2 + 4x3.

x1 = amount of money in dollars invested in the first fund
x2 = amount of money in dollars invested in the second fund
x3 = amount of money in dollars invested in the third fund

    F = 
 
 
 
 (objective function)
Subject to
 
 
 
 (dollars available)
 
 
 
 
 (total investment return)
  x1        0, x2        0, x3        0
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