Mr. Jones has $11,000 to invest in three types of stocks, low-risk, medium-risk, and high-risk. He invests according to three principles. The amount invested in low-risk stocks will be at most $5,000 more than the amount invested in medium-risk stocks. At least $7,000 will be invested in low- and medium-risk stocks. No more than $8,000 will be invested in medium- and high-risk stocks. The expected yields are 6% for low-risk stocks, 7% for medium-risk stocks, and 8% for high-risk stocks. How much money should Mr. Jones invest in each type of stock to maximize his total expected yield?
Mr. Jones has $11,000 to invest in three types of stocks, low-risk, medium-risk, and high-risk. He invests according to three principles. The amount invested in low-risk stocks will be at most $5,000 more than the amount invested in medium-risk stocks. At least $7,000 will be invested in low- and medium-risk stocks. No more than $8,000 will be invested in medium- and high-risk stocks. The expected yields are 6% for low-risk stocks, 7% for medium-risk stocks, and 8% for high-risk stocks. How much money should Mr. Jones invest in each type of stock to maximize his total expected yield?
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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Transcribed Image Text:Mr. Jones has $11,000 to invest in three types of stocks, low-risk, medium-risk,
and high-risk. He invests according to three principles. The amount invested in low-risk
stocks will be at most $5,000 more than the amount invested in medium-risk stocks. At least
$7,000 will be invested in low- and medium-risk stocks. No more than $8,000 will be invested
in medium- and high-risk stocks. The expected yields are 6% for low-risk stocks, 7%
for medium-risk stocks, and 8% for high-risk stocks. How much money should Mr. Jones
invest in each type of stock to maximize his total expected yield?
Mr. Jones should invest $ in low-risk stocks, $ in medium-risk stocks, and $
in high-risk stocks.
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