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4. You are managing the account of an investor who wishes to invest their money in two stock funds Stock fund X invests in 60%
4. You are managing the account of an investor who wishes to invest their money in two stock funds Stock fund X invests in 60% small cap and 40% large cap stocks. with a 2% (of principal) management fee and an average return of 10% of principal per year. Stock fund Y invests in 30% small cap and 'i'D'l'b large cap stocks. with a 5% {of principal) management fee and an average return of 'Ir'% of principal per year. The investor wants at least 50% of their investments in large cap stocks. with a total management fee of less than 1.5% a.} What are your decision variables? Constraints? b.} How should you invest the money in order to maximize the net return on principal per year? c.) Write the problem in standard form and equality form. d.) What are the slaclo'surplus values for each constraint at the optimal value? Explain what each means in the context of the
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