Investment services must develop an investment portfolio

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Reference no: EM131115345

CPS Investment Services must develop an investment portfolio for a new client. CPS is considering six investment plans of three different types for this client. The investment plans with their expected yield are given below:

Investment Plan - Estimated Annual Return (%)

A1 - 6

A2 - 5

B1 - 7

B2 - 8

C1 - 10

C2 - 9

The client is interested to invest $80,000. To minimize the risk in investment, it is the CPS’s policy that at least 40% of the entire amount be invested in units of type A and not more than 35% in type B or type C plan. Formulate the problem as an LP model in order to maximize the total return.

Reference no: EM131115345

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