Score: 0 of 1 pt 3 of 11 (4 complete) Hw Score: 36.36%, 4 of 11 pts Instructor-c

Question

Score: 0 of 1 pt 3 of 11 (4 complete) Hw Score: 36.36%, 4 of 11 pts Instructor-created question Question Help The Rio Credit Union has $250,000 available to invest in a 12-month commitment and wants to invest all of it. The money can be placed in Brazilian treasury notes yielding an 10% return or in riskier high-yield bonds at an average rate of retum of 9% Credit union regulations require diversification to the extent that at least 60% of the investment be placed in Treasury notes, lt is also decided that no more than 30% of the investment be placed in bonds. 300 n y the The aim of the objective function for Rio Credit Union should be to objective value. ng ms Decision variables: x $ invested in Treasury notes Y $invested in Bonds C3 Objective function (in decimals, eg.. 07, NOT 7%): ric Subject to: 250 e 162 $250,000 (C,) ?1$125,000 (C2) $75,000 (C) X in 000) ays re ar 1x+ 1Y 1X + OY x Y 20 alue .} .. : 1.1 J? | :/ 1. (1,L) More Enter your answer in the edit fields and then click Check Answer thing All parts showing Clear Al Check Answer

Explanation / Answer

The objective is to maximize the overall return.

Z = ROI = 0.10 X + 0.09 Y

Subject to,

1X + 1Y = 250,000

1X + 0Y >= 125,000

0X + 1Y <= 75,000

X, Y >= 0

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