An investor wishes to maximize the return on her portfolio and also maintain certain liquidity and risk standards.The alternatives and their corresponding returns are:
Alternative Return
Municipal Bonds (M)6.2%
Certificates of Deposit (S)5.1%
Treasury Bills (T) 6.9%
AA Bonds (B)10.5%
The investor wishes to have at least 25% of the portfolio in Treasury Bills,no more than 20% in AA bonds;no more than 15% in Certificates of Deposit,and no more than 10% in municipal bonds.Formulate a linear programming problem for the investor seeking to maximize the expected return of a $200,000 portfolio.

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The Answer of An investor wishes to maximize the return on her portfolio and also maintain certain liquidity and risk standards.The alternatives and their corresponding returns are:
Alternative Return
Municipal Bonds (M)6.2%
Certificates of Deposit (S)5.1%
Treasury Bills (T) 6.9%
AA Bonds (B)10.5%
The investor wishes to have at least 25% of the portfolio in Treasury Bills,no more than 20% in AA bonds;no more than 15% in Certificates of Deposit,and no more than 10% in municipal bonds.Formulate a linear programming problem for the investor seeking to maximize the expected return of a $200,000 portfolio.

An Investor Wishes to Maximize the Return on Her Portfolio