Huey McDuck has received $70,000 from his rich uncle and wantsto determine how much to invest in each of four differentinvestments: municipal bonds expected to return 8.5%, CDs expectedto return 5%, T-bills expected to return 6.5% and a stock fundexpected to return 13%.
The following guidelines have been established to ensure thatthe portfolio is diversified for reduced risk.
- No more than 20% of the total investment should be in municipalbonds
- At least 30% of the investment should be in T-bills
Write the LP formulation
Set the problem up in Excel and solve using ExcelSolver
Report the optimal solution and total expectedreturn
