A couple wants to invest up to $80000. They can purchase a type A bond yielding 8.5% return and a type B bond yielding a 10.75% return on the amount invested. They also want to invest at least as much in the type A bond as in the type B bond. They will also invest at least $40000 in type A and no more than $70000 in type B bond: How much should they invest in each type of bond to maximize their return? Let x be the amount invested in type A bond and y the amount invested in type B bond: a) Write the objective function to be maximized, P = b) The feasible region has 3 corner points. List the three Peints; Corner points: Determine the amount to be invested in each bond to maximize the return and determine the maximum return: Amount to be invested in type A bonds: Amount to be invested in type B bonds: Maximum return is:
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Donna D.
Mr Jones has $9000 to invest in 3 types of stocks: low-risk, medium-risk and high-risk. (We will assume he wants the amounts in the 3 types to add up to $9000.) Low-risk must be at most $1000 more than amt. in medium-risk. No more than $5000 must be in low- and medium-risk. No more than $7000 must be in Medium- and high-risk. The expected yields are 6% for low-risk, 7% for medium-risk and 8% for high-risk. How should Mr. Jones invest in each type of stock to maximize the yield. How should I graph this to find the corner points and the objective functions?
Supreeta N.
An investment broker is instructed by her client to invest up to $\$20,000$, some in a junk bond yielding 9% per annum and some in Treasury bills yielding 7% per annum. The client wants to invest at least $\$8000$ in T-bills and no more than $12,000 in the junk bond. (a) How much should the broker recommend that the client place in each investment to maximize income if the client insists that the amount invested in T-bills must equal or exceed the amount placed in the junk bond? (b) How much should the broker recommend that the client place in each investment to maximize income if the client insists that the amount invested in T-bills must not exceed the amount placed in the junk bond?
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