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An investor is considering three types of investments: a high - risk venture into oil leases with a potential return of 1 5 % ,
An investor is considering three types of investments: a highrisk venture into oil leases with a potential return of a mediumrisk investment in bonds with a return, and a relatively safe stock investment with a return. He has $ to invest. Because of the risk, he will limit his investment in oil leases and bonds to and his investment in oil leases and stock to How much should he invest in each to maximize his return, assuming investment returns are as expected?
a Define the variables. Be specific with descriptive words.
b Clearly state the constraints all inequalities related to the feasible region.
c State the objective function.
d Set up the initial simplex matrix needed to solve the linear programming problem using the Simplex Method.
e perform all pivots necessary using row operations to transform the matrix until the solution is feasible
f how much should he invest in each to maximize his return, assuming investment returns are as expected?
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