Bob and Dora Sweet wish to start investing $600 each month. The Sweets are looking at five investment plans and wish to

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Bob And Dora Sweet Wish To Start Investing 600 Each Month The Sweets Are Looking At Five Investment Plans And Wish To 1 (83.99 KiB) Viewed 52 times

Bob and Dora Sweet wish to start investing $600 each month. The Sweets are looking at five investment plans and wish to maximize their expected return each month. Assume interest rates remain fixed and once their investment plan is selected they do not change their mind. The investment plans offered are as follows. Fidelity 9.9% return per year (X₁) Optima 16.4% return per year (X₂) CaseWay 7.5% return per year (X3) 5.3% return per year (X4) Safeway National 12.6% return per year (X5) Since Optima and National are riskier, the Sweets want a limit of 30% per month of their total investments placed in these two investments. Since Safeway and Fidelity are low risk, they want at least 20% of their investment total placed in these investments. Formulate the LP model for this problem. Formulate the LP model for this problem. MAX: Subject to: total high risk low risk X₁ X₂ X3 X4 X5 20