=7-37 Bhavika Investments, a group of financial advisors and retirement planners, has been requested to provide advice on how to invest $200,000 for one of its clients. The client has stipulated that the money must be put into either a stock fund or a money market fund, and the annual return should be at least

$14,000. Other conditions related to risk have also been specified, and the following linear program was developed to help with this investment decision:

Minimize risk subject to total investment is

= +

+ =

12 5 200 000 2

S M S M ,

$ 00 000 0 10 0 05 14 000 40 00

,

. . ,

, S M M

+ ≥

≥

returnmust be at least

$14,000 0 40 000 0

at least inmoney market fund

$ , must be S M, ≥

where S = dollars invested in stock fund M = dollars invested in money market fund The QM for Windows output is shown below.