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The Heinlein and Krampf Brokerage firm has just been instructed by one of its clients to invest $...

The Heinlein and Krampf Brokerage firm has just been instructed by one of its clients to invest $250,000 of her money obtained recently through the sale of land holdings in Ohio. The client has a good deal of trust in the in¬vestment house, but she also has her own ideas about the distribution of the funds being invested. In par¬ticular, she requests that the firm select whatever stocks and bonds they believe are well rated, but within the following guidelines:
(a) Municipal bonds should constitute at least 20%
of the investment.
(b) At least 40% of the funds should be placed in a
combination of electronic firms, aerospace firms,
and drug manufacturers.
(c) No more than 50% of the amount invested in
municipal bonds should be placed in a high-risk,
high-yield nursing home stock.
Subject to these restraints, the client's goal is to maximize projected return on investments. The analysts at Heinlein and Krampf, aware of these guidelines prepare a list of high-quality stocks and bonds and their corresponding rates of return.

Perform the four steps and write equations   ie define variables, determine objective function, identify constraints, list the non-negativity statement.

  YOU ARE WRITING EQUATIONS ONLY HERE, NO GRAPHING.   

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Answer #1

Ca) Fosnulate thispost io selection ooben) using Lp Cb) Slelihis poblem) Let 지-. doll as nes kd Los Angeles XQ dollad Investe

optimal Solution : X1-4 So/000 X2 40 x3 0

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