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Business, 08.07.2019 22:40 perlalimas7372

George johnson recently inherited a large sum of money; he wants to use a portion of this money to set up a trust fund for his two children. the trust fund has two investment options: (1) a bond fund and (2) a stock fund. the projected returns over the life of the investments are 6 percent for the bond fund and 10 percent for the stock fund. whatever portion of the inheritance he finally decides to commit to the trust fund, he wants to invest atleast 30 percent of that amount in the bond fund. in addition he wants to select a mix that will enable him to obtain a total return of atleast 7.5 percent. a) formulate a linear programming model that can be used to determaine the percentage that should be allocated to each of the possible i nvestment alternativesb) solve the problem using the graphical solution procedure.

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