A trust officer at the Blacksburg National Bank needs to determine how to invest $100,000 in the following collection of bonds to maximize the annual return.

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Creating the xxxxxx xxxxxxxxxxx xxxxx xx xxxxxxxxx xxx problem:

xxxxxxxx xxxxxxxxx xxx the xxxxxxx xx money xxxxxx be invested xx each bond.

xx x Amount xx xxxxx xx xxxxxx xx xxxx A

X2 x xxxxxx of xxxxx xx invest xx Bond x

X3 = xxxxxx of xxxxx to invest in xxxx C

xx x Amount of xxxxx to xxxxxx in xxxx x

X5 = Amount of money xx invest in Bond E

Objective xxxxxxxxx

xxxxxxxxx xx xx maximize the xxxxx xxxxxx return.

xxxxxxxx f(X1, X2, X3, X4, xxx = xxxxxx + 8%X2 x xxxx x xxxx + xxxx

xxxxxxxxxxxx

Total investment:

xx + xx + X3 + xx x xx x 100,000.

xx xxxxx 50% xx xxx money xxxx to short xxxx xxxxxxx

xx + X5 >x 50,000.

No more than 50% of xxx money xxxxxx xx to xxxx risk issues:

X1 + xx x xx <x xxxxxxx

At least 30% xx xxx xxxxx should go xx tax xxxx xxxxxxxxxxxx

xx + X2 x xx >= xxxxxxx

xx xxxxx 40% xx xxx total annual xxxxxx should be tax xxxxx

9.5%X1 x xxxx x xxxx >x 40%(9.5%X1 x xxxx x xxxx x 9%X4 x xxxxx

xxx negativity constraints (all the variables xxxxxx xx nonnegative):

X1, X2, xxx

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Answer Submitted on Thu, 2012-03-22 22:58teacher rated 389 times 4.316195price: $0.00 your question seems to be incomplete, i have taken from Spreadsheet Modeling & Decision Analysis (Book Only) By Cliff Ragsdale and solved it