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George Johnson recently inherited a large sum of money; he wants to use a portion of this money to set up a trust fund for

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George Johnson recently inherited a large sum of money; he wants to use a portion of this money to set up a trust fund for his two children. The trust fund has two investment options: (1) a bond fund and (2) a stock fund. The projected returns over the life of the investments are 6% for the bond fund and 10% for the stock fund. Whatever portion of the inheritance George finally decides to commit to the trust fund, he wants to invest at least 30% of that amount in the bond fund. In addition, he wants to select a mix that will enable him to obtain a total return of at least 7.5%.

Formulate a linear programming model that can be used to determine the percentage that should be allocated to each of the possible investment alternatives. If required, round your answers to three decimal places.

Let B = percentage of funds invested in the bond fund

S = percentage of funds invested in the stock fund

B +

S

s.t.

B

Bond fund minimum

B +

S

Minimum return

B +

S

Percentage requirement

Solve the problem using the graphical solution procedure. If required, round your answers to one decimal place.

Optimal solution: B =

, S =

Value of optimal solution is

%

Show the works and make a form like this one please, thankyou.

cond fund poiton the tance George finally decides to co n t to the tnst fund, he-rt, to i ver ltost 2g of th t cu the barn find. :n fddten he er tsteca mrx wil e,ble him to tezi ! tota ret r of rt eart 7,5%, Formuot, linear programming mede1 eat can be used to dtteminth, pecentage that-euid b sliocated to "ch er the Dessele i-ver:mort titer-stive, 1f"gured rd s r ower, to three dedrel pace, Let 8- percentage of funds iewested in the bend nd s-parcsntags of funds inested in the 45ock fund Band fund minimum ommel soluton: 8

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