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Operation Research 1 / Spring-2022 The International City Trust (ICT) invests in short-term trade credit, corporate, bonds, gold stocks, and constructions loans. To encourage diversified
"Operation Research 1 / Spring-2022" The International City Trust (ICT) invests in short-term trade credit, corporate, bonds, gold stocks, and constructions loans. To encourage diversified portfolio, the board of directors has placed limits on the amount that can be committed to any one type of investment. ICT has $5 million available for immediate investment and wishes to do two things: 1. Maximize the return of the investments made over the next six months. 2. Satisfy the diversification requirements as set by the board of directors. The specifics of the investment possibilities are as follows: Maximum Investment Investment Interest Return ($ Millions) Trade Credit Corporate Bonds 11% Gold Stocks Construction Loans 7% 1.0 2.5 19% 1.5 15% 1.8 11 Page In addition, the board specifies that at least 55% of the funds invested must be in gold stocks and construction loans, and that no less than 15% be invested in trade credit
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