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Acadian Leisure Tours and Resorts (ALTR) managed a pension fund for employees for many years. Currently the fund has a balance of $162,900,000. The
Acadian Leisure Tours and Resorts (ALTR) managed a pension fund for employees for many years. Currently the fund has a balance of $162,900,000. The Pension Fund Committee wishes to invest these monies in 4 mutual funds in such a manner as to maximize the annual returns for 2022. The funds and expected returns are listed as follows: Asian Market: Baron Global: 3.6% 9.0% .Columbia Advisors: 1.0% Diamond Hill: 5.5% To reduce risk but also maximize annual return, Fund Committee have decided that: At most 20% is in Baron Global. At least 35% should be in Columbia Advisors. At most 60% and no less than 40% is in Asian Market and Diamond Hill combined. And for every $1 invested in Asian Market there should be at most $2 invested in Diamond Hill. Formulate an LP model that will assist ALTR in allocating the pension fund to maximize the annual returns. (6 points) uvate W
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