An investor is establishing an investment portfolio that will include stock and bond funds. She has

$$1,000,000$ to invest, and she does not want the portfolio to include more than $60\%$ stocks. The average

annual return for the stock fund she plans to invest in is $10\%,$ whereas the average annual return for the bond

fund is $5\%.$ She further estimates that the most she could lose in the next year in the stock fund is $6\%,$

whereas the most she could lose in the bond fund is $2\%.$ To reduce her risk, she wants to limit her potential

maximum losses to $$150,000.$

Formulate a linear optimization model for this problem by defining the decision variables, objective function,

and all the constraints. Do NOT solve the problem after formulating.