A brokerage firm has been tasked with investing $500,000 for a new client The client has asked that the broker select promising stocks and bonds for in vestment, subject to the following guidelines At least 20 in municipal bonds At least 10 each in real estate stock and pharmaceutical stock At leas...

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A brokerage firm has been tasked with investing $500,000 for a new client. The client has asked

Question:

A brokerage firm has been tasked with investing $500,000 for a new client. The client has asked that the select promising and bonds for in-vestment, subject to the following guidelines:
• At least 20% in municipal bonds
• At least 10% each in real estate stock and pharmaceutical stock
• At least 40% in a combination of energy and domestic automobile with each accounting for at least 15%
• No more than 50% of the total amount invested in energy and automobile in a combination of real estate and pharmaceutical company stock
Subject to these constraints, the client’s goal is to maximize projected return on investments. The has prepared a list of high-quality and bonds and their corresponding rates of return, as shown in the following table.

Formulate this selection problem by using LP and solve it by using Excel. Stocks
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