Chapter 2: Linear programming: model formulation and graphical solution Homework: 1 Formulation problems 1. Janet Lopez is establishing an investment portfolio that will include stock and bond funds. She has $720,000 to invest, and she does not want the portfolio to include more than 65% stocks. The average annual retum for the stock fund she plans to invest in is 18%, whereas the average annual return for the bond fund is 6%. She further estimates that the most she could lose in the next year in the stock fund is 22%, whereas the most she could lose in the bond fund is 5%. To reduce her risk, she wants to limit her potential maximum losses to $100,000 a. Formulate a linear programming model for this problem. 2. A candidate for mayor in a small town has allocated $40,000 for last-minute advertising in the days preceding the election. Two types of ads will be used: radio (R) and television (T). Each radio ad costs $200 and reaches 3,000 people. Each television ad costs $500 and reaches an estimated 7,000 people. In planning the advertising campaign, the campaign manager would like to reach as many people as possible, but she has specified that at least 10 ads of each type must be used. Also, the number of radio ads must be at least as great as the number of television ads. a. Formulate a linear programming model for this problem. 2. A candidate for mayor in a small town has allocated $40,000 for last-minute advertising in the days preceding the election. Two types of ads will be used: radio (R) and television (T). Each radio ad costs $200 and reaches 3,000 people. Each television ad costs $500 and reaches an estimated 7,000 people. In planning the advertising campaign, the campaign manager would like to reach as many people as possible, but she has specified that at least 10 ads of each type must be used. Also, the number of radio ads must be at least as great as the number of television ads a Formulate a linear programming model for this