An investor has at most $70,000 to invest in government bonds, mutual funds, and money market. The average yields for the government bonds, mutual funds, and money market funds are 2%, 11%, and 9%. The investor's policy requires that the total amount invested in mutual and money market funds not exceed the amount invested in government bonds. How much should be invested in each type of investment in order to maximize the return? What is the maximum return in the first year? Government Bonds? Mutual Funds? Money Market?
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Since there are 3 variables in this problem, I will be solving this using Simplex method and provide you the simplex tableaus. Ok?
Yes. Thank you.
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