1. Lets say you want to start building your investment portfolio. You have a list of six possible stocks in which you are interested and a budget of $50,000. You are risk-averse and do not want to invest more than 30% in any single investment. At least 60% of your budget should be invested in long-term bonds (maturing in 8 or more years). Finally, you do not want to invest more than 15% of your budget on stocks with a fair rating. How much should you invest to maximize your return? (Assume that you will invest all of your budget.) Write the mathematical model (aka algebraic formulation) for each question.

Stock	Return	Years to Maturity	Rating
NO	1.32%	8	1-Excellent
VE	4.96%	9	3-Good
MB	5.90%	6	4-Fair
ER	4.52%	10	4-Fair
DE	2.88%	7	1-Excellent
CE	2.25%	11	2-Very Good