Question
Investor Group specialized in recommending long-term financial portfolios for wealthy clients. One such client wishes to invest $4,000,000 in the following bonds: Company Return Acme
Investor Group specialized in recommending long-term financial portfolios for wealthy clients. One such client wishes to invest $4,000,000 in the following bonds:
Company | Return |
Acme chemical | 3.5% |
DynaStar | 10.50% |
Eagle Vision | 12.75% |
Micro Modeling | 6.75% |
OptiPro | 15.25% |
Sabre Systems | 17.80% |
The client has made the following specifications:
At least 3% should be invested in each company.
At least 35% is invested in DynaStar, Micro Modeling, and Sabre Systems.
Investor Group formulates this investment problem as a Linear Programming model that maximizes total returns, given the company's specifications. Nonnegative decision variables X1, X2, X3, X4, X5, X6 are defined that respectively represent the amount of money (in dollars) that is invested in Acme Chemical, DynaStar, Eagle Vision, MicroModeling, OptiPro, and Sabre Systems.
Which of the following models represents the LP formulation?
Question 12 options:
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