3. (20 points) A Tac0ma financial services alloCates funds to: stocks, bonds, mutual funds, and cash. For each instrument, rate of return and risk are as shown: Stock 1 0% 0.8 Bond 3% 0.2 Mutual Fund 4% 0.3 Cash 1 % 0.0 Total risk is limited to value based on client type. Currently we have a client with max risk tolerance of 0.5. The company has the following guidelines: - No more than 70% of investment in stocks - Investment in mutual funds must be at least as much as in bonds - Amount of cash at least 8%, but no more than 25% In figuring out the Optimal investment allocation far this client, please answer the following three questions: a. What are the decision variables? b. What is the objective function? 0. List all the constraints

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