70000 0 30000

Return 13000

NO Constraint
1 100000 100000
2 30000 30000
3 100000 50000
Solution:

Stock Group Return % Maximum Amount Return on

Allocation% Invested($) Investment
Blue Chip 10 ≥50 X 0.10X
Growth 15 ≤30 Y 0.15Y
Speculative 20 ≤30 Z 0.20Z
Total 100000 Total return

Maximize the return:

0.10X+0.15Y+0.20Z (total return on investment)

Subject to constraints:

X+Y+Z ≤ $100000 (Total investment constraint)

Y+Z ≤ 0.30*($100000) (limit on growth and speculative stock)

X+Z ≥ 0.50*($100000) (minimum investment in blue chip ad speculative stock)

Return on
Investment
0.10X
0.15Y
0.20Z
Total return