Maximize the annual return on its investment portfolio

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Reference no: EM131687523

A bank is attempting to determine where its assets should be invested during the current year. At present $1,000,000 is available for investments in bonds,home loan, auto loans, and personal loans. The annual rates of return of each type o investment are known to be the following bonds, 5%; home loans, 10%; auto loans,8%, personal loans 15%. to ensure that the bank's portfolio is not to risky, the bank's investment manager was placed the following 3 restrictions on the bank's portfolio: 1.- The amount invested in personal loans cannot exceed the amount invested in bonds. 2.- the amount invested in home loans cannot exceed the amount invested in auto loans. 3.- No more than 20% of the total amount invested can be in personal loans. Help the bank to maximize the annual return on its investment portfolio,

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Reference no: EM131687523

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