PB Investments is investing $50,000 for a client into a bondfund paying 4.5% per year and into a stock fund paying 6% per year.PB Investments always places 5% of a portfolio into a noninterestbearing cash account for safety. The amount invested into stocksshould be no more than 3 times the amount invested into bonds. Atleast 25% of the market investment should be in bonds. At least 40%of the return should come from bonds.
Formulate into linear programming equations to maximizereturn.
a) PB Investments is investing $50,000 for a client into a bondfund paying 4.5% per year and into a stock fund paying 6% per year.PB Investments always places 5% of a portfolio into a noninterestbearing cash account for safety.
b) The amount invested into stocks should be no more than 3 timesthe amount invested into bonds.
c) At least 25% of the market investment should be in bonds.
d)At least 40% of the Return on Investment should come frombonds.
