How to formulate a linear programming model, Operation Management

Assignment Help:

George Johnson recently inherited a large sum of money; he wants to use a portion of this money to set up a trust fund for his two children. The trust fund has two investment options: (1) a bond fund and (2) a stock fund. The projected returns over the life of the investments are 6% for the bond fund and 10% for the stock fund. Whatever portion of the inheritance he finally decides to commit to the trust fund, he wants to invest at least 30% of that amount in the bond fund. In addition, he wants to select a mix that will enable him to obtain a total return of at least 7.5%.

a- Formulate a linear programming model that can be used to determine the percentage that should be allocated to each of the possible investment alternatives.

b- Find the optimal solution using the graphical solution procedure.

Please be sure to show all work related to this question. Especially for Part B. I will not rate/give points unless I feel that this has been done.


Related Discussions:- How to formulate a linear programming model

Explain global environmental concepts, Consider an international firm you a...

Consider an international firm you are familiar with, and consider what the firm needs to be concerned about when entering a foreign marketplace. Specifically, in terms of the chap

Category management from procurement and contracting perspe, do you have a...

do you have a writer in area of category management from procurement and contracting perspective ? phD level

Define quality and definition of quality, 1) Definition of Quality Part 1: ...

1) Definition of Quality Part 1: How do you define Quality? Provide a definition of quality, support your definition, and define the stakeholders who are affected by your quality d

Explain research process to start searching for participants, When is the b...

When is the best time in the research process to start searching for participants?

Explain mixed strategies in production planning, Distinguish between pure a...

Distinguish between pure and mixed strategies in production planning. Provide examples of each strategy.

Explain what is the role of the osi network layer, What is the role of the ...

What is the role of the OSI network layer when you transfer information from one computer to another? Please do not just copy a ton of paragraphs from a website. I want a one pa

Provide description of the business model, Create the document with conside...

Create the document with consideration to the following: E-Commerce business plan Use Word Title Page Table of Contents Use of the auto generated table of contents

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd