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Wiggins Financial manages funds for a number of companies and wealthy clients. The investment strategy is tailored to each client's needs. For a new client,

Wiggins Financial manages funds for a number of companies and wealthy clients. The investment strategy is tailored to each client's needs. For a new client, Wiggins Financial has been authorized to invest up to $1.5 million in two investment funds: a stock fund and a money market fund. Each unit of the stock fund costs $60 and provides an annual rate of return of 12%; each unit of the money market fund costs $120 and provides an annual rate of return of 6%. The client wants to minimize risk subject to the requirements that the annual income from investment be at least $80,000. According to Wiggins Financial's risk measurement system, each unit invested in the stock fund has a risk index of 7, and each unit invested in the money market fund has a risk index of 2; the higher risk index associated with the stock fund simply indicates that it is the riskier investment. Wiggins Financial's client also specified that at least $600,000 be invested in the money market fund.
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