Question 1148054: An investor has up to N$450,000 to invest in three types of investments. Type A pays 6% annually and has a risk factor of 0. Type B pays 10% annually and has a risk factor of 0.06. Type C pays 12% annually and has a risk factor of 0.08. To have a well-balanced portfolio, the investor imposes the following conditions. The average risk factor should be no greater than 0.05. Moreover, at least one-half of the total portfolio is to be allocated to Type A investments and at least one-fourth of the portfolio is to be allocated to Type B investments. How much should be allocated to each type of investment to obtain a maximum return?
Answer by ikleyn(52800)   (Show Source):
You can put this solution on YOUR website! .
This problem is for 3 independent variables (and can not be reduced to 2 variables),
so it is significantly above the typical high School level.
If you learn Linear Programming method at the College or University, then your educational institution should provide you
with an appropriate software / solver.
Use it . . .
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