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Formulate a linear programming problem that can be used to solve the folliowing question. Suppose for an investment no more than $20,000 is placed in three mutual funds with annual returns of S, 9%, and 10, respectively The investor requires an annual return of at least $1600 and wishes to minimize the risk. The second mutual fund is twice as risky as the firstar third is 4 times as risky as the first. How should the money be allocated to minimize the risk? Let risk 2 dy Xamount of money in dollars invested in the first fund xamount of money in dollars invested in the second fund X amount of money in dollars invested in the third fund Minmize (objective function) Subject to (dollars avalable) (total investment returm)

Formulate a linear programming problem that can be used to solve the folliowing question. Suppose for an investment no more than $20,000 is placed in three mutual funds with annual returns of S, 9%, and 10, respectively The investor requires an annual return of at least $1600 and wishes to minimize the risk. The second mutual fund is twice as risky as the firstar third is 4 times as risky as the first. How should the money be allocated to minimize the risk? Let risk 2 dy Xamount of money in dollars invested in the first fund xamount of money in dollars invested in the second fund X amount of money in dollars invested in the third fund Minmize (objective function) Subject to (dollars avalable) (total investment returm)

College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter6: Linear Systems
Section6.8: Linear Programming
Problem 3SC: In Example 3, if the accountant earns a profit of 100 on each individual return and a profit of 175...
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Formulate a linear programming problem that can be used to solve the folowing question Suppose for an investment no more than $20,000 is placed in three mutual funds with annual returns of 5%, 9%, and 10, respectively The investor requires an annual return of at least $1600 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 alocated to minimize the risk? Let risk-+ 2+ dey X= amount of money in doilars invested in the first fund x amount of money in dollars invested in the second fund Xy - amount of money in dollars invested in the third fund Minmize (objective function) Subject to (dollars available) (total investment return) Select 0. x Select 0, Select O
Transcribed Image Text:Formulate a linear programming problem that can be used to solve the folowing question Suppose for an investment no more than $20,000 is placed in three mutual funds with annual returns of 5%, 9%, and 10, respectively The investor requires an annual return of at least $1600 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 alocated to minimize the risk? Let risk-+ 2+ dey X= amount of money in doilars invested in the first fund x amount of money in dollars invested in the second fund Xy - amount of money in dollars invested in the third fund Minmize (objective function) Subject to (dollars available) (total investment return) Select 0. x Select 0, Select O
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