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3 . Your company has $ 9 8 0 , 0 0 0 in a stock brokerage account. As the financial economist of your company,

3. Your company has $980,000 in a stock brokerage account. As the financial economist of your company, you would like to reinvest the $980,000 in a portfolio that would maximize return on investment while at the same time maintaining a relatively conservative mix of stocks and bonds. The following table shows the investment opportunities and expected rates of return.
Investment Opportunity Expected Rate of Return
Corporate Bonds 9.5
Technology Stocks 1.46
Blue Chip Stocks 7.5
Treasury Bonds 7.0
The Investment Committee has mandated that at least 60 percent of the investment consist of a combination of corporate and treasury bonds, 25 percent Blue Chip Stock, and no more than 15 percent Technology Stock. Formulate this portfolio selection problem using linear programming, i.e., determine the objection function and the constraints.

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