Formulate a linear programming problem that can be used to solve the following question. Suppose for an investment no more than $16,000 is placed in three mutual funds with annual returns of 3%, 6%,...


Formulate a linear programming problem that can be used to solve the following question.


Suppose for an investment no more than $16,000 is placed in three mutual funds with annual returns of 3%, 6%, and 10%, respectively. The investor requires an annual return of at least $960 and wishes to minimize the risk. The second mutual fund is twice as risky as the first, and the third is 4 times as risky as the first. How should the money be allocated to minimize the risk? Let risk =x
1 + 2x
2 + 4x
3.


x
1 = amount of money in dollars invested in the first fund

x
2 = amount of money in dollars invested in the second fund

x
3 = amount of money in dollars invested in the third fund

























 ---Select--- Maximize Minimize
F =




(objective function)
Subject to




(dollars available)





(total investment return)


x
1  ---Select--- ≤ > <>


0,x
2  ---Select--- = > ≤ <>


0,x
3
---Select--- ≤ < =="" ≥="">






Jun 05, 2022
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