Welte Mutual Funds, Inc., located in New York City has just obtained $100,000 by converting industrial bonds to cash and is now looking for other...

Government bonds

4.5

Management of Welte imposed the following investment guidelines:

1.    Neither industry (oil or steel) should receive more than $50,000.

2.    Government bonds should be at least 25%of the steel industry investment.

3.    The investment in Pacific Oil, the high-return but high-risk investment cannot be more than 60% of the total oil industry investment.

1.   Formulate a Linear-programming Model for Welte Mutual Funds. (20 points)

2.   What portfolio recommendations __investments and amounts __should be made for the available $100,000? Provide your Excel solution along with all the reports generated through Excel. (15 point)

3.   Write a report that explains your findings. (15 points)