Question
Ivana Myrocle wishes to invest her inheritance of $200,000 so that her return on investment is maximized, but she also wishes to keep her risk
Ivana Myrocle wishes to invest her inheritance of $200,000 so that her return on investment is maximized, but she also wishes to keep her risk level relatively low. She has decided to invest her money in any of three possible ways: CDs, which pay a guaranteed 6 percent; stocks, which have an expected return of 13 percent; and a money market mutual fund, which is expected to return 8 percent. She has decided that any or all of the $200,000 may be invested, but any part (or all) of it may be put in any of the 3 alternatives. Thus, she may have some money invested in all three alternatives. In formulating this as a linear programming problem, define the variables as follows:
C = dollars invested in CDs
S = dollars invested in stocks
M = dollars invested in the money market mutual fund
Suppose that Ivana has decided that the amount invested in CDs cannot exceed one-third of the total amount invested in CDs, stocks, and money market mutual fund. Which is the best way to write this constraint?
Select one:
a. +3C + 2S - 2M 0b. -2C + S - 2M 0c. -C + 2S - 2M 0d. 2C - S - M 0e. -C + 3S + 3M 0
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