1. After 5 year of graduating from business school, a student has saved $40,000 on account. After consulting with an investment officer, he would like to reinvest the $40,000 in a portfolio that would maximize return on investment while at the same time maintaining a relatively conservative mix of stocks. The following table shows the investment opportunities and rates of return. Investment Opportunity Rate of Return Real estate Stock 8 % Technology Stock 9 % Oil Stocks 6 % The investment officer has decided that at least 60 percent of the investment consist of a combination of Real Estate and Technology Stocks, at most 15 percent Technology Stock, and no more than 25 percent Oil Stock.

1. Formulate this portfolio selection problem using linear programming.

2. Use QM for Windows to solve the problem