A financial manager wants to design an investment portfolio for a client. The client has $50,000 available to invest, and the planner has identified four investment options for the fund. The following requirements have been placed on the planner.
-No single option should absorb more than 40% of the fund.
-At least 60% of the fund should be invested in options that will mature within 5 years.
-The investment amount on excellent-rating options should be at least $15,000 or higher than the investment amount on good-rating options.
Set up the linear program to help this planner find the investment arrangement that can maximize this portfolio's return. Report your investment arrangement and the portfolio return.
Investment Option
Return Rate
Rating
Years to Mature
A
5.5%
Excellent
4
B
9%
Good
3
C
7%
7
D
11%
6