TextBox 1 x fx B D E F F H L M N o Q R S Investment Risk Index Table 2 1 1 2 Table 1 3 3 4 5 S Year Payment 1 1901 3 2401 4 285 5 315 6 460 Yield (%) at Maturity 1.5 6.5 11 Savings (SV) Security A(SA) Security B (SB) Years to Maturity 1 3 4 215 1 2 4 6 As part of the settlement for a class action lawsuit, Hoxworth Corporation must provide sufficient cash to make the annual payments (in thousands of dollars) shown in Table 1. 7 8 9 Initial SV SA The annual payments must be made at the beginning of each year. The judge will approve an amount that, along with earnings on its investment, will cover the annual payments. Investment of the funds will be limited to savings and two government securities shown in Table 2. All three are availible to invest at the beginning of every year. SB Year 1 2 5 6 SV SA SB Payment During the first 3 years (i.e., Year 1, Year 2 and Year 3), a) the average risk index of invested funds cannot exceed 3; b) the average years to maturity at the beginning of each year cannot exceed 2.5. There are no risk or liquidity requirements for Years 4 to 6. 10 Cash 11 12 13 14 Investment 15 16 17 18 19 Portofolio 20 21 22 23 24 25 26 27 28 Solve this LP to minimize the initial amount needed. TextBox 1 x fx B D E F F H L M N o Q R S Investment Risk Index Table 2 1 1 2 Table 1 3 3 4 5 S Year Payment 1 1901 3 2401 4 285 5 315 6 460 Yield (%) at Maturity 1.5 6.5 11 Savings (SV) Security A(SA) Security B (SB) Years to Maturity 1 3 4 215 1 2 4 6 As part of the settlement for a class action lawsuit, Hoxworth Corporation must provide sufficient cash to make the annual payments (in thousands of dollars) shown in Table 1. 7 8 9 Initial SV SA The annual payments must be made at the beginning of each year. The judge will approve an amount that, along with earnings on its investment, will cover the annual payments. Investment of the funds will be limited to savings and two government securities shown in Table 2. All three are availible to invest at the beginning of every year. SB Year 1 2 5 6 SV SA SB Payment During the first 3 years (i.e., Year 1, Year 2 and Year 3), a) the average risk index of invested funds cannot exceed 3; b) the average years to maturity at the beginning of each year cannot exceed 2.5. There are no risk or liquidity requirements for Years 4 to 6. 10 Cash 11 12 13 14 Investment 15 16 17 18 19 Portofolio 20 21 22 23 24 25 26 27 28 Solve this LP to minimize the initial amount needed