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Write a Linear Programming Model, Including the Objective Function and the Set

Question 19

Multiple Choice

Write a linear programming model, including the objective function and the set of constraints for the following problem. DO NOT SOLVE, but be sure to define all your variables. ​
Brown Bros., Inc., is an investment company doing an analysis of the pension fund for a certain company. The fund has a maximum of $10 million to invest in two places: no more than $8 million in stocks yielding 12%, and at least $2 million in long-term bonds yielding 9%. The stock-to-bond investment ratio cannot be more than 2 to 1. How should Brown Bros. advise its client so that the investments yield the maximum yearly return?

DENOTE:

X = amount invested in stock (in millions of dollars)
Y = amount invested in bonds (in millions of dollars)


A) Write a linear programming model, including the objective function and the set of constraints for the following problem. DO NOT SOLVE, but be sure to define all your variables. ​ Brown Bros., Inc., is an investment company doing an analysis of the pension fund for a certain company. The fund has a maximum of $10 million to invest in two places: no more than $8 million in stocks yielding 12%, and at least $2 million in long-term bonds yielding 9%. The stock-to-bond investment ratio cannot be more than 2 to 1. How should Brown Bros. advise its client so that the investments yield the maximum yearly return? ​ DENOTE: ​ X = amount invested in stock (in millions of dollars)  Y = amount invested in bonds (in millions of dollars)  ​ A)    ​ B)    ​ C)    ​ D)    ​ E)    ​
B) Write a linear programming model, including the objective function and the set of constraints for the following problem. DO NOT SOLVE, but be sure to define all your variables. ​ Brown Bros., Inc., is an investment company doing an analysis of the pension fund for a certain company. The fund has a maximum of $10 million to invest in two places: no more than $8 million in stocks yielding 12%, and at least $2 million in long-term bonds yielding 9%. The stock-to-bond investment ratio cannot be more than 2 to 1. How should Brown Bros. advise its client so that the investments yield the maximum yearly return? ​ DENOTE: ​ X = amount invested in stock (in millions of dollars)  Y = amount invested in bonds (in millions of dollars)  ​ A)    ​ B)    ​ C)    ​ D)    ​ E)    ​
C) Write a linear programming model, including the objective function and the set of constraints for the following problem. DO NOT SOLVE, but be sure to define all your variables. ​ Brown Bros., Inc., is an investment company doing an analysis of the pension fund for a certain company. The fund has a maximum of $10 million to invest in two places: no more than $8 million in stocks yielding 12%, and at least $2 million in long-term bonds yielding 9%. The stock-to-bond investment ratio cannot be more than 2 to 1. How should Brown Bros. advise its client so that the investments yield the maximum yearly return? ​ DENOTE: ​ X = amount invested in stock (in millions of dollars)  Y = amount invested in bonds (in millions of dollars)  ​ A)    ​ B)    ​ C)    ​ D)    ​ E)    ​
D) Write a linear programming model, including the objective function and the set of constraints for the following problem. DO NOT SOLVE, but be sure to define all your variables. ​ Brown Bros., Inc., is an investment company doing an analysis of the pension fund for a certain company. The fund has a maximum of $10 million to invest in two places: no more than $8 million in stocks yielding 12%, and at least $2 million in long-term bonds yielding 9%. The stock-to-bond investment ratio cannot be more than 2 to 1. How should Brown Bros. advise its client so that the investments yield the maximum yearly return? ​ DENOTE: ​ X = amount invested in stock (in millions of dollars)  Y = amount invested in bonds (in millions of dollars)  ​ A)    ​ B)    ​ C)    ​ D)    ​ E)    ​
E) Write a linear programming model, including the objective function and the set of constraints for the following problem. DO NOT SOLVE, but be sure to define all your variables. ​ Brown Bros., Inc., is an investment company doing an analysis of the pension fund for a certain company. The fund has a maximum of $10 million to invest in two places: no more than $8 million in stocks yielding 12%, and at least $2 million in long-term bonds yielding 9%. The stock-to-bond investment ratio cannot be more than 2 to 1. How should Brown Bros. advise its client so that the investments yield the maximum yearly return? ​ DENOTE: ​ X = amount invested in stock (in millions of dollars)  Y = amount invested in bonds (in millions of dollars)  ​ A)    ​ B)    ​ C)    ​ D)    ​ E)    ​

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