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Mathematics, 25.01.2020 02:31 jennyferluna0216

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 9% for the bond fund and 20% for the stock fund. whatever portion of the inheritance he finally decides to commit to the trust fund, he wants to invest at least 60% 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 at least 8.5%.

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 alternatives

b) solve the problem using the graphical solution procedure.

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