Linear Programming
posted by Andy .
I need help formulating a LP model to solve this question. "An investment company helps a client with 300,000 dollars to invest into 3 funds. At least 10% must be invested in a Growth and Income fund and at least 20% must be invested in a money market fund. The client has a portfolio risk index of 0.05 The risk ratings for the growth, income and money market funds are 0.10, 0.05 and 0.01 respectively. A portfolio risk index is computed as a weighted average of the risk ratings for the 3 funds where the weights are the fraction of the portfolio invested in each of the funds. The company is currently forecasting a yield of 20% on Growth fund, 10% on the income fund and 6% on the money market fund."
Oh.. forgot to add, the textbook gives the answer G = 120,000 I = 30,000 and M = 150,000
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