The solution to the given question is "Optimal B = 0.3 and S = 0.7 where 0.088 was its optimal value", and further calculation can be defined as follows:
linear programming
- It is a mathematical formula with something like a system of linear as well as a set of linear programming in which there is a linear optimization problem to the Nonnegative parameters.
- In this, Let B compensate also for percentages of money held throughout the bond portfolio and S for both the percentage of money held throughout the bond fund.
In a fund for stocks.
[tex]Max \ \ 0.06 \ b+0.1 \ S \ \ \ \\\\B \geq 0.3 \ \ \ \ \ \ \ \ \ \ \ \ \text{Bond fund minimum} \\\\0.06 \ B+ 0.1 \ S \geq 0.075 \ \ \ \ \ \ \text{Minimum return} \\\\B+S=1 \ \ \ \ \ \ \ \text{All funds invested}\\\\B,S\geq 0 \\[/tex]
- For a maximization problem, just use 5 phases of the visual solution process. Start by measuring the rows which fit the disparities.
[tex]B = 0.3 \\ \\0.06 \ B+0.1 \ S = 0.75\\\\ B+s =1[/tex]
- It is the very first main principle to use a sign[tex]\geq[/tex], greater than or equal to, that answer is just all points because the third limitation uses an exclamation point, both places on the graph are the answer.
- Its colored area contains each resolution stage that concurrently fulfills all limitations its Viable Area was named as its location of the approaches to any inequalities.
- That ideal option exists in which there is limited restriction mostly on bond portfolio and all funds. Making investment constraints converge.
- Replacement B= 0.3 throughout the restriction invested throughout all resources and settle to S.
[tex]B+s=1=10 \\\\0.3+s = 1 \\\\The \ \ s= 0.7 \\[/tex]
Optimal B = 0.3 and S = 0.7 where 0.088 was its optimal value.
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