Chapter 6.4, Problem 43E

In Problems 39-47, construct a mathematical model in the form of a linear programming problem. Do not solve.

Investment strategy. An investor is planning to divide her investments among high-tech mutual funds, global mutual funds, corporate bonds, municipal bonds, and CDs. Each of these investments has an estimated annual return and a risk factor (see the table). The risk level for each choice is the product of its risk factor and the percentage of the total funds invested in that choice. The total risk level is the sum of the risk levels for all the investments. The investor wants at least $20\text{\%}$ of her investments to be in CDs and does not want the risk level to exceed $1.8$. What percentage of her total investments should be invested in each choice to maximize the return?