Bonds-mainstream stocks and speculative stocks

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Reference no: EM132192202

A mutual fund company must invest $100,000 among three types of investments: bonds, mainstream stocks and speculative stocks. The rates of return are respectively 5%, 7% and 10%. Company policy requires that the investment into any one of the three types cannot exceed 40% and that at least two out of the following three rules must be satisfied:

a) The percentage invested in bonds must be greater than 25%

b) The percentage invested in mainstream stocks must be less than 50%

c) The percentage invested in speculative stocks must be less than 12%

Formulate an Integer Programming model to optimally allocate the $100,000.

Reference no: EM132192202

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