Question: The KMC (Kean Management Class) company has just been instructed by one of its clients to invest $250,000 of her money. The client has a good deal of trust in the KMC but she has also certain fixations about the distribution of her funds being invested. Her guidelines are as follows:

a) Municipal Bonds should constitute at least 20% of the investment.

b) At least 40% of the funds should be placed in a combination of electronic firms, aerospace firms and drug manufacturers.

c) No more than 50% of the amount invested in municipal bonds should be placed in a high- risk, high yield nursing home stocks.

Subject to these constraints, the client's goal is to maximize projected return on investments. The KMC prepares a list of high quality stocks and bonds and their corresponding rates of return: