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Problem 2. On retirement am employee wants to invest his retirement benefits in four investment alternatives on a ten-year horizon. The alternatives involve risks, which
Problem 2. On retirement am employee wants to invest his retirement benefits in four investment alternatives on a ten-year horizon. The alternatives involve risks, which are subjectively marks on a seven point scale. The data are given below: Investment Alternative Return (%) Number of Years Term Deposit 9.5 Saving Special 7.5 Equity Shares 20.0 Real Estate 25.0 Risk 1 0.5 7 10 2 What percentage of his retirement benefits he invests in each of the four schemes for highest return if he decided to take risk between 1 and 5 and invest at least 30% in real estate? (a) Formulate this investment problem as a Linear Programming Problem (b) Convert it to a standard Form
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