Chris Corry has a company sponsored retirement plan at a major brokerage firm. He has the following funds available:

His financial advisor has suggested that at most 40% of the portfolio should be composed of high risk funds. At least 25% should be invested in bond funds, and at most 40% can be invested in any single fund. At least six funds should be selected, and if a fund is selected, it should be funded with at least 5% of the total contribution. Develop and solve an integer optimization model to determine which funds should be selected and what percentage of his total investment should be allocated to each fund.

Transcribed Image Text:

Type Stock Stock Stock Stock Stock Stock Medium Blend Risk Return Fund 1 1 .98% 13.18% 9.40% 7.71 % 8.35% 16.38% 4.10% 12.52% 8.62% 11.14% 8.78% 9.44% 8.38% 7.65% 6.90% High High High High High High 4 6 Medium Blend Medium Medium Blend Medium Blend Low Low Low Low Low Low 8 9 10 Blend Blend 12 13 14 15 16 17 Bond Bond Bond Bond 5.53% 6.30%