Question: I need the answer as soon as possible The Agro Promotion Bank is trying to select investment portfolio for a cotton farmer. The bank has

I need the answer as soon as possible I need the answer as soon as possible The Agro

The Agro Promotion Bank is trying to select investment portfolio for a cotton farmer. The bank has chosen a set of five investment alternatives, with subjective estimates of rates of return and risk, as follows: Investment Annual rate Risk of return (%) Tax-free municipal bonds 6.0 1.3 Corporate bonds 8.0 1.5 High grade common stock 5.0 1.9 Mutual fund 7.0 1.7 Real estate 15.0 2.7 The bank officer in charge of the portfolio would like to maximize the average annual rate of return on the portfolio. However, the wealthy investor has specified that the average risk of the portfolio should not exceed 2.0; and does not want more than 20% of the investment to be put into real estate. Formulate an L.P. model for the

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