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An investment firm Yorktown Inc. is handling an $800000 portfolio for a client. The client would like to restrict the portfolio to a mix of

An investment firm Yorktown Inc. is handling an $800000 portfolio for a client. The client would like to restrict the portfolio to a mix of the following two stocks:

Stock

Price/Share

Estimated Annual Reutrn/Share

Softmicro

$35

$7

Zonam

$55

$6

The maximum amount that the client would like to invest in Softmicro is $400000. The maximum amount that the client would like to invest in Zonam is $580000. Develop a mathematical model for maximizing the annual return.

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