Question: Pat has $50,000 to invest. The investments he is considering are listed below with projected annual rates of return. For safety reasons his investment advisor suggests he not invest more than 20% in gold. His advisor also recommends not investing more in real estate than in utilities. Since Aunt Jenny work for Cincinnati Bell he promised to put at least 10% in CBT. And one more thing, due to stability of Inland Western Estates, at least half of what is invested in real estate must be invested in Inland. Set up the linear programming model for Pat to maximize his portfolio earnings for next year.

Investment Annual Return (%)

Fox Real Estate Dev. 10

Inland Western Estates 9

Cincinnati Bell Telephone (CBT) 7

Cinergy 8

Rockler Gold Trust 12