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 stockfund. The projected returns over the life of the investments are 11% for the bond fund and 15% for the stock fund. Whatever portion of the inheritance he finally decides to commit to the trust fund, he wants to investat least 30% 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 12.5%.(a) Formulate a linear programming model that can be used to determine the percentage (as a decimal) that should be allocated to each of the possible investment alternatives. (Assume B is the percentage (as adecimal) of funds invested in the bond fund and S is the percentage (as a decimal) of funds invested in the stock fund.)Max (as a decimal)s.t.bond minimum fundminimum returnpercentage requirementB, S≥ 0(b) Solve the problem using the graphical solution procedure. What is the value of the objective function at the optimal solution?at (B, S) =

Given, thatProjected returns over the life of the investments: for the bond fund and for the stock…

Answered: George Johnson recently inherited a…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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