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Linear Programming

1. An investor is considering three types of investments: a high-risk venture into oil leases with a potential return of 15%, a medium-risk investment in stocks with a 9% return, and a relatively safe bond investmentwiht a 5% return. He has $50,000 to invest. Because of the risk, he will limit his investment in oil lease and stocks to 30% and his investment in oil leases and bonds to 50%. How much should be invest in each to maximize his return, assuming investment returns are as expected?


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Very neat and step-by-step solution is provided.