(Investment): An investor has $150,000 to invest in oil stock,steel stock, and government bonds. The bonds are guaranteed toyield 5%, but the yield for each stock can vary. To protect againstmajor losses, the investor decides that the amount invested in oilstock should not exceed $50,000. The total amount invested in stockCANNOT exceed the amount invested in bonds by more than$25,000.
a) Set up the problem (decision variables, problem constraints,non-negativity constraints).
b) Now form the objective function if oil stock yields 12% andthe steel stock yields 9%. How much should be invested in eachalternative in order to maximize the return (don't forget thebonds). What is the maximum return?
