Question: use simplex method (minimization) 29. An investor has up to $250,000 to invest in three types of in- vestments. Type A pays 8% annually and

use simplex method (minimization)

29. An investor has up to $250,000 to invest in three types of in- vestments. Type A pays 8% annually and has a risk factor of 0. Type B pays 10% annually and has a risk factor of 0.06. Type C pays 14% annually and has a risk factor of 0.10. To have a well-balanced portfolio, the investor imposes the fol- lowing conditions. The average risk factor should be no greater than 0.05. Moreover, at least one-fourth of the total portfolio is to be allocated to Type A investments and at least one-fourth of the portfolio is to be allocated to Type B invest- ments. How much should be allocated to each type of invest- ment to obtain a return? minimize

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