Question 7 An employee of a furniture retail store chain of 10 stores is soon about to retire and he, along with the investment fund managing his upcoming pension, need to decide what securities to invest in and how much to invest in each subject to various restrictions/constraints that must be followed. The following information will help determine exactly how much of the exactly $100,000 is to be invested in each of the following 8 securities considered for his pension Security Exp. Ann. Rate of Ret. Expected Risk min inv. max. inv. $5,000 Can. Co. Bond A Can. Stock B Can. Stock C Can. Gov't Bond D Amer. Gox't Bond E Amer. Stock F Amer. Stock G British Stock H 3% 12% 21% 1.0% 1.5% 17% 23% 10% low medium high low low medium high medium $8,000 $3,000 $25,000 $17,000 $10.000 $20,000 $25,000 $20,000 $8,000 $22,000 $4,000 To determine how much of the $100,000 to invest in each security (using A, B, . as the decision variables) in order to maximize the total expected annual rate of return (in $'s) of the fund, formulate the following: (hint: For one of the below parts, you will need to create another decision variable which you will need to define.) a. the objective function (only need to include first 2 entries, last 2 entries and...'in between) b. at least $30,000 must be invested in Canadian securities C. no more than $7,000 can be invested in high risk securities d. the total amount invested in Canadian stocks must no more than 50% of the total amount invest in all stocks e. the amount invested in Canadian bonds must be at least 50% more than the amount invested in American bonds If the fund does not want to invest at least the minimum of $8,000 in Canadian Gov't Bonds, nothing can be invested in Canadian Gov't Bonds