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?
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DENOTE:
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X = amount invested in stock (in millions of dollars)
Y = amount invested in bonds (in millions of dollars)
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• A) ​
• B) ​
• C) ​
• D) ​
• E) ​

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Definitions:

Firmness

The quality of being resolute or showing steadfast adherence to a decision or opinion.

Committed Position

A firm stance or viewpoint held in a negotiation, often difficult to change or negotiate away from.

Costs of Delay

The negative consequences, such as financial losses or missed opportunities, resulting from postponing a decision or action.

Negotiation

The process by which two or more parties aim to reach an agreement on matters of mutual interest while attempting to maximize their own outcomes.