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Suppose that you inherit $10,000. The will states how you must invest the money. Some (or all) of the money must be invested in stocks and bonds. The requirements are that at least $3000 be invested in bonds, with expected returns of $0.08 per dollar, and at least $2000 be invested in stocks, with expected returns of $0.12 per dollar. Because the stocks are medium risk, the final stipulation requires that the investment in bonds should never be less than the investment in stocks. How should the money be invested so as to maximize your expected returns?
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