Write a linear programming model, including the objective function and the set of constraints for the following problem. DO NOT SOLVE, but be sure to define all your variables.
?
Brown Bros., Inc., is an investment company doing an analysis of the pension fund for a certain company. The fund has a maximum of $10 million to invest in two places: no more than $8 million in stocks yielding 12%, and at least $2 million in long-term bonds yielding 9%. The stock-to-bond investment ratio cannot be more than 2 to 1. How should Brown Bros. advise its client so that the investments yield the maximum yearly return?
?
DENOTE:
?
x = amount invested in stock (in millions of dollars)
y = amount invested in bonds (in millions of dollars)
?
A.
?
B.
?
C.
?
D.
?
E.
?
Answer: A
Mathematics
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