Algebra

A stock broker has $200,000 to invest in stocks and bonds. She wants to invest at least $100,000 in stocks and at least $50,000 in bonds. If stocks have an annual yield of 9% and bonds have an annual yield of 7% how much should she invest in each to maximize her income? Find the maximum return.

  1. 0
  2. 0
  3. 3
asked by Veronika
  1. you want to

    maximize p = .09x + .07y subject to
    x+y <= 200000
    x >= 100000
    y >= 50000

    A little linear programming reveals
    x = 150000, y = 50000 p=17000

    1. 0
    2. 0
    posted by Steve

Respond to this Question

First Name

Your Response

Similar Questions

  1. algebra

    A person invested 20,000$ in stocks and bonds. Her investment in bonds is 5,000$ more than half her investment in stocks. How much did she invest in stocks? how much did she invest in bonds?
  2. Algebra 1

    A person invested $20,000 in stocks and bonds. Her investment in bonds is $4,000 more than one third her investment in stocks. How much did she invest in stocks? How much did she invest in bonds?
  3. Math

    formulate but do not solve the linear programming problem. Tracy has at most $200,000 to invest in stocks,bonds, and money-market funds. She expects anual yields of 15%, 10%, and 8%, respectively, on these investments. If Tracy
  4. math

    Zach is planning to invest up to $50,000 in corporate and municipal bonds. The lest he will invest in corporate bonds is $6000 and he does not want to invest more than $27,000 in corporate bonds. He also does not want to invest
  5. Math For Business

    A man has decided to invest at most $90,000 in securities in the form of corporate stocks. He has three options: blue chip stocks he assumes will yield a 6% return, growth stocks @ 12%, and speculative stocks @ 20%. No more than
  6. math

    Zach is planning to invest up to $50,000 in corporate and municipal bonds. The lest he will invest in corporate bonds is $6000 and he does not want to invest more than $27,000 in corporate bonds. He also does not want to invest
  7. Math Analysis (similar to my previous question)

    How would you set this one up as well? 5. You have up to $30,000 to invest. Your broker recommends investing in AAA bonds yielding 8% and B+ bonds yielding 12%. You decide to invest at most $12,000 in the B+-rated bond and at
  8. algebra 2

    Suppose that you have received an unexpected inheritance of $36,000. You have decided to invest the money by placing some of the money in stocks and some in bonds. To diversify, you decided that five times the amount in bonds
  9. personal finance

    Brenda has received a $10,000 gift from her mother and is trying to decide how to invest it.She thinks she would like to invest it in stocks because she knows that stocks have been earning about 10%rate of interest over the last
  10. Math

    Sonny owns $5,000 worth of High Risk Enterprises (HRE) stock. HRE has a standard deviation of 16 percent and a beta of 2.0. He wants to invest another $5,000 and create a $10,000 portfolio that is equally as risky as the overall

More Similar Questions