A financial manager wants to design an investment portfolio for a client. The client has $50,000 available to invest, and the planner has identified four investment options for the fund. The following requirements have been placed on the planner.
-No single option should absorb more than 40% of the fund.
-At least 60% of the fund should be invested in options that will mature within 5 years.
-The investment amount on excellent-rating options should be at least $15,000 or higher than the investment amount on good-rating options.
Set up the linear program to help this planner find the investment arrangement that can maximize this portfolio's return. Report your investment arrangement and the portfolio return.
|
Investment Option
|
Return Rate
|
Rating
|
Years to Mature
|
|
A
|
5.5%
|
Excellent
|
4
|
|
B
|
9%
|
Good
|
3
|
|
C
|
7%
|
Excellent
|
7
|
|
D
|
11%
|
Good
|
6
|