Maths
posted by Sarah .
An Investment Fund manager is required to maximise the return on a portfolio of bonds given the following information:
Bond types Projected rate of return
Benchmark government 9.1
UK gilts 10.3
Global investment grade (US $) 6.7
Global investment grade (euro) 8.7
Global investment grade (£) 5.9
High yield emerging market 8.8
The limitations imposed on the fund manager are:
(i) The sum of Global investment grade (US $) and global investment grade (£) bonds cannot be less than 30% of the total investment.
(ii) Global investment grade (euro) is required to be no more than 20% of the total investment.
(iii) The sum of Benchmark government, UK gilts and high yield emerging market bonds must account for at least 40% but no more than 50% of the total investment.
(iv) The sum allocated to the portfolio is £250 million.
(v) The sum of Global investment grade (US $) and global investment grade (£) cannot exceed 50% of the total investment.
(a) Formulate the linear programme in standard form to maximise the projected return.

Please understand that no one here will do your work for you. However, we will be happy to read over whatever you come up with and make suggestions and/or corrections.
Please post what you think, and someone might be able to help you. 
Max Z = 9.1x1 + 10.3x2 + 6.7x3 +8.7x4 + 5.9x5 + 8.8x6
Subject to:
x3 + x5 ¡Ý 750,000
x3 + x5 ¡Ü 1,500,000
x4 ¡Ü 500,000
x1 + x2 + x6 ¡Ý 1,000,000
x1 + x2 + x6 ¡Ü 1,500,000
I feel the constraints are wrong. The next question requires you to set up the initial simplex tableau and the constraints then don't make sense. 
Sorry the symbols are showing strangely, they are greater/less than or equal to.

On the constraints, where did you get the figures? All I see in the problem statement is percents?

I converted the 250 million into figures, was that wrong?

I have to input the information into an initial simple tableau after.

I don't see anything wrong with the constraints.

Was I right to convert them?
When I add them into the initial simplex tableau it's filled with 1s is that normal? 
I cannot comment on your tableau operation, I don't know them. Yes, the percents were properly converted.
Respond to this Question
Similar Questions

economics
As an investor you are faced with two choices investing in a risky fund which has a return of 12% and a standard deviation of 20% and risk free asset which has a return of 6%. 1)As a risk averse investor, my objectives is to invest … 
Stats
G. Johnson recently inherited a large sum o 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 … 
Algebra investment
An investor had a total of 25,000 put into a portfolio of stocks, bonds, and mutual funds. In one year, he earned 8% on the stock investment, 10% on the bond investment and 6% on the mutual funds investment. The annual(simple interest) … 
Math
A winner of the Florida Lotto has decided to invest $500,000 per year. Two possible considerations are an international stock with an estimated return of 12% and a mutual fund with an estimated return of 6%. The estimated risk index … 
finite!!!
an investor is considereing three types of investment: a highrisk venture into oil leases with a potential return of 15%, a medium risk investment in bonds with a 9% return, and a relatively safe stock investment with a 5% return. … 
FINANCIAL ACCOUNTING
A portfolio manager is managing a $10 million portfolio. Currently the portfolio is invested in the following manner: Investment Dollar Amount Invested Beta Electric Utility $2 million 0.6 Cable Company $3 million 0.8 Real Estate Development … 
math
A winner of the Florida Lotto has decided to invest $500,000 per year. Two possible considerations are an international stock with an estimated return of 12% and a mutual fund with an estimated return of 6%. The estimate risk index … 
Finance
Walmart wishes to determine the rate of return of an investment made four years ago for $25 000 and currently has a market value of $31 500. During the current year the investment generated cash flows of $1000. Required: What is the … 
Finance
Consider the following information and calculate the required rate of return for the Winkler Investment Fund. The total investment fund is $2 million. Stock Investment Beta    A $ 200,000 1.50 B 300,000 0.50 C 500,000 … 
Quantitative method
A client who contacted CWD this past week has a maximum of $50,000 to invest. CWD's has two investment funds. The projected return for internet fund is 12% and Blue chip 9%. The investment advisior requires that at most $35,000 of …