\ \

\

Consider \"\" is the amount placed in AAA bond  and \"\" is the amount placed in  a CD. \ \

\

The total return is \"\". \ \

\

Hence \"\" is the objective function to be maximized. \ \

\

The constraints are : \ \

\

A positive amount must be invested in each then \"\", \"\". \ \

\

Total investment cannot exceed then \"\". \ \

\

Investment in the CD must be atleast \"\" then \"\". \ \

\

Investment in the CD must exceed or equal the investment in the bond. \ \

\

Graph : \ \

\

Graph the constraints . \ \

\

\"\" \ \

\

Observe the graph the corner points are \"\", \"\",\"\", \"\" and \"\". \ \

\

\ \

\

The function is \"\".

\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \
Point \

Function \"\"

\
\

Value

\
\"\" \

\"\"

\
\

\"\"

\
\

\"\"

\
\

\"\"

\
\

\"\"

\
\

\"\"

\
\

\"\"

\
\

\"\"

\
\"\" \

\"\"

\
\

\"\"

\
\"\" \

\"\"

\
\

\"\"

\
\

The maximum profit is \"\" when \"\" is invested in AAA bond and \"\" is invested in a CD.

\

\ \

\

The maximum profit is \"\" when \"\" is invested in AAA bond and \"\" is invested in a CD.