# Refer to the mathematical model in Example 4: (A) Does matrix equation (3) always have a solution

## Question:

Refer to the mathematical model in Example 4:

(A) Does matrix equation (3) always have a solution for any constant matrix B?

(B) Do all these solutions make sense for the original problem? If not, give examples.

(C) If the total investment is k_{1} = $10,000, describe all possible annual returns k_{2}.

**Data from Example 4**

An investment advisor currently has two types of investments available for clients: a conservative investment A that pays 5% per year and a higher risk investment B that pays 10% per year. Clients may divide their investments between the two to achieve any total return desired between 5% and 10%. However, the higher the desired return, the higher the risk. How should each client invest to achieve the indicated return?

## Step by Step Answer:

**Related Book For**

## Finite Mathematics For Business Economics Life Sciences And Social Sciences

**ISBN:** 9780134862620

14th Edition

**Authors:** Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker