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An investment broker is instructed by her client to invest $40,000 in 2 funds: a Global Bond fund yielding 9% and the Invesco fund yielding
- An investment broker is instructed by her client to invest $40,000 in 2 funds: a Global Bond fund yielding 9% and the Invesco fund yielding 7%. The client wants to invest at least $8,000 in the Invesco fund and no more than $12,000 in the Global Bond fund. How much should the broker recommend that the client place in each investment to maximize income if the client wants the amount invested in the Invesco fund equal or exceed the amount placed in the Global Bond fund.
Let x be the amount invested in the Global Bond fund, and let y be the amount invested in the Invesco fund.
Model:
- Draw the set of feasible solutions
- Find the corners of the set
- Find the maximum value of the objective function
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