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Exercise 2 Hans Schlau Investment Inc. has received a customer order to buy shares of two invest- ment funds for up to 10 T.

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Exercise 2 Hans Schlau Investment Inc. has received a customer order to buy shares of two invest- ment funds for up to 10 T. Since fund A contains securities with a higher risk, the customer has specified that a maximum of 2 T more may be invested in fund A than in fund B. The expected gain for fund A is 7% and for fund B 5 %. Furthermore, the customer has excluded shortings. (i) Formulate an LP in general form ("maximization form") to maximize course gain. Please name the decision variables, objective function and constraints. (ii) Draw the feasible range and determine an optimal solution graphically. Therefore, shade the feasible solution space and indicate the optimal solution. (iii) Put the problem in matrix form. Determine the number of basic solutions. Cal- culate all basic solutions of the LP. Calculate the objective value for each base solution and specify whether it is a corner (feasible base solution) or not. Then assign a point to each base solution in your drawing (ii).

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