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Unformatted text preview: c. s 1 = 0, s 2 = 0, s 3 = 4/7 5. a. Let B = percentage of funds invested in the bond fund S = percentage of funds invested in the stock fund Max 0.06 B + 0.10 S s.t. B 0.3 Bond fund minimum 0.06 B + 0.10 S 0.075 Minimum return B + S = 1 Percentage requirement b. Optimal solution: B = 0.3, S = 0.7 Value of optimal solution is 0.088 or 8.8%...
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This note was uploaded on 11/18/2011 for the course BUS 220 taught by Professor Drexel during the Fall '08 term at SUNY Stony Brook.
- Fall '08