MGT 397 Chapter 4 Assignment Fall 2021 1. Kisha currently has $200,000 to invest and wants to invest all of it. Her goal is to maximize expected return over the next year. She has selected the following investment alternatives, a growth stock fund with a 15% annual return, municipal bonds with an 5.0% annual return, treasury bills with a 3.0% return, and CDs with 2.0% return. In the interest of risk diversification, she decided to abide by the following guidelines: 1. No more than 15% of the investment should be in municipal bonds 2. At least 25% of the investment should be in treasury bills and CDs combined. 3. At least 5% of the total investment should be in treasury bills. 4. At least 2% of the total investment should be in CDs. 5. The amount invested in stocks should not exceed the amount invested in the other three alternatives. 6. To be safe, the combined investment in CDs and treasury bills should exceed the total investment in municipal bonds and stocks by a ratio of 1.5 to 1. Formulate as a linear programming problem in order to determine how much Kisha should invest in each investment alternative to achieve her objective. (Formulation only) Your formulation should follow the following steps. Define the decision variables State the objective function State the constraints Hint: Refer to "An Investment Example" in chapter 4 of our course textbook