A bank is attempting to determine where to invest its assets during the current year. At present,

Question:

A bank is attempting to determine where to invest its assets during the current year. At present, $500,000 is available for investment in bonds, home loans, auto loans, and personal loans. The annual rates of return on each type of investment are known to be the following: bonds, 6%; home loans, 8%; auto loans, 5%; personal loans, 10%. To ensure that the bank’s is not too risky, the bank’s investment manager has placed the following three restrictions on the bank’s amount invested in personal loans cannot exceed the amount invested in bonds.
The amount invested in home loans cannot exceed the amount invested in auto loans.
No more than 25% of the total amount invested can be in personal loans.
Help the bank maximize the annual return on its investment Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...