Insight Traders, Inc. invests in various types of securities. The firm has $5 million for immediate investment

Question:

Insight Traders, Inc. invests in various types of securities. The firm has $5 million for immediate investment and wants to maximize the interest earned over the next year. Four investment possibilities are presented in the following table. To further structure the the board of directors has specified that at least 40 percent of the investment must be in corporate bonds and common stock. Furthermore, no more than 20 percent of the investment may be in real estate.
Investment Expected Interest Earned (%)
Corporate bonds .......... 8.5
Common stock ........... 9.0
Gold certificates ......... 10.0
Real estate ............ 13.0
Write the objective function and constraints for this investment problem after fully defining the decision variables.

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...