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TradingCo wants to invest at most $10,000 in 2021. Two investment options are proposed: KTS and DB, with annual yields of 20% and 10% respectively.

TradingCo wants to invest at most $10,000 in 2021. Two investment options are proposed: KTS and DB, with annual yields of 20% and 10% respectively. Based on market research, TradingCo wishes to limit the amount invested in KTS to no more than 60% of the total investment.

Let X1 be KTS

Let X2 be DB

Max Z: Z = 0.2X1 + 0.1X2

X1 + X2 <= $10,000 (Constrant 1)

0.4X1 - 0.6X2 <=0 (Constrant 2)

X1,X2 >=0 (non-negative constrants)

Suppose that TradingCo imposes one more restriction: investment in DB should be at leastatimes the investment in KTS where ais a non-negative constant. Find the optimal solution to the problem and discuss how the value of a would affect TradingCo's best investment decision and annual yield. (Use the graphical method and solve for the optimal solution in terms of a)

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