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An investor wishes to maximize the return on her portfolio which is worth $200,000 while also maintaining certain liquidity and risk standards. The alternatives and
An investor wishes to maximize the return on her portfolio which is worth $200,000 while also maintaining certain liquidity and risk standards. The alternatives and their corresponding returns are: Alternative m Municipal o Certicates of Deposit (S) Tresury Bills 0 AA Bonds 0 The investor wishes to have at least 15% of the portfolio in Treasury Bills, not more than 30% in AA Bonds; no more than 15% in Certificates of Deposit, and no more than 20% in municipal bonds. Suppose you formulate a linear programming problem for the investor seeking to maximize the expected return of a $200,000 portfolio. What is the optimal solution (allocation of $200,000 to the four types of investment)? (Round your answers to a whole number.) 0 M = 20,000, 8 = 30,000, T = 100,000, B = 50,000 0 M = 0,8 = 40,000, T = 120,000, B = 40,000 0 M = 60,000, 8 = 40,000, T = 60,000, B = 40,000 0 M = 20,000, 8 = 30,000, T = 130,000, B = 20,000 0 M = 40,000, 8 = 30,000, T = 70,000, B = 60,000
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