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You plan to invest in three different market fund: Stable, Moderate, and Aggressive. The total funds available is $2,000,000 and all the money needs to

You plan to invest in three different market fund: Stable, Moderate, and Aggressive. The total funds available is $2,000,000 and all the money needs to be invested. Additionally, your total Portfolio Return should be at least $175,000, your investment in the Aggressive Fund must be at least 25% of your total investment, and your investment in the Stable Fund must be at most 60% of your total investment. Please refer to the data below:

Resources Stable (S) Moderate (M) Aggressive (A)

Risk Index (per $) 0.05 0.15 0.35

Expected Return 3% 8% 15%

Constraints

Funds Available S + M + A = 2,000,000 Total Portfolio Return 0.03 S + 0.08 M + 0.15 A >= 175,000 Aggressive Fund Investment 0.75 A - 0.25M - 0.25 S >= 0 Stable Fund Investment* S <= 0.6 (S + M + A)

*Bring all variables (S, M, A) to the LHS-side for the Stable Fund constraint (similar to Aggressive)

Goal: MIN (0.05 S + 0.15 M + 0.35 A)

3. What is the Dollars Invested in Moderate Fund amount?

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