Solve the problem.Mr. and Mrs. Adams have $20,000 to invest in low-risk, medium-risk, and high-risk stocks. They decide that at least $10,000 must be invested in low-risk stocks, at least $1000 must be invested in medium-risk stocks, and no more than $5000 can be invested in high-risk stocks. The expected yields on the stocks are 6% for low-risk, 8% for medium-risk, and 10% for high-risk. Mr. and Mrs. Adams will choose the amount to invest in each type of stock in order to maximize the yield on their investment.(a) Name in words the three quantities that must be determined.(b) Write the three quantities in (a) algebraically using only the variables x and y.(c) Write the complete set of inequalities needed to solve the problem.(d) Write the objective function.

Question

What will be an ideal response?

Answer 1

(a) amount invested in low-risk stocks, amount invested in medium-risk stocks, amount invested in high-risk stocks
(b) x, y, 20,000 - x - y, respectively
(c) 
(d) yield = 0.06x + 0.08y + 0.10(20,000 - x - y) = 2000 - 0.04x - 0.02y