LP the cu wear programming models are used 9 Linear propre Unulate ML Highland's profit. hodels are used by many Wall ect a desirable bond portfolio. The ersion of such a model. Solodrex in four bonds; $1,000,000 is The expected annual return, the Street firms to select a following is a sim is considering available for in worst-case annual in Table 15. The duration of a bond sidering investing in four bonds for investment. The expected annual annual return on each bond, and the sur ch bond are given in Table 15. The durati asure of the bond's sensitivity to interest to maximize the expected return from its Solodrex wants to maximize the exp hond investments, subject to three constraints. traint 1 The worst-case return of the bond portfolio is a measure of the must be at least 8%. Constraint 2 The average duration of the portfolio must be at most 6. For example, a portfolio that invested $600.000 TABLE 15 Bond Expected Return (%) Worst-Case Return (%) Duration 13 6% 8% 10% 9% 9 in bond 1 and $400,000 in bond 4 would have an average duration of 600,000(3) + 400,000(9) = 5.4 1,000,000 Constraint 3 Because of diversification requirements, at most 40% of the total amount invested can be invested in a single bond. Formulate an LP that will enable Solodrex to maximize the expected return on its investment. 10 Coalco produces coal at three mines and ships it to