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Problem 7-25 (Algorithmic) George Johnson recently inherited a large sum of money he wants to use a pomon of this money to set up a
Problem 7-25 (Algorithmic) George Johnson recently inherited a large sum of money he wants to use a pomon of this money to set up a trust fund for his two children. The trust fund has two investment options: (1) bond fund and (2) a stock fund. The projected returns over the life of the investments are for the band fund and 10 for the stock fund. Whatever portion of the inheritance George Mirally deodes to commit to the trust fund, he wants to invest at least 30% of that amount in the bond fund. In adation, he wants to select a mix that will enable tomto obtain a total return of at least 7.5% a. Formulate a linear programming model that can be used to determine the percentage that should be located to each of the possible investment alternatives. It required, round your answers to three decimal places. Let 3 percentage of funds invested in the bond tund S = percentage of funds invested in the stock fund Bond und minimum Minimum return Percentage requirement h. Solve the problem using the graphical solution procedure. If required, round the answers to one decimal place Optimal solution: Value of optimal solutions
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