(solution) You are trying to decide how to invest $12 million in domestic

(solution) You are trying to decide how to invest $12 million in domestic

You are trying to decide how to invest $12 million in domestic and foreign stocks (as a fortune cookie once said, if you apply IE 335, great success will be your neighbor). Domestic stocks have been returning 11% per year and foreign 17%. Naturally, you would like to maximize the annual return from your investments. But you want to exercise some caution. No more than 10 million should go into domestic stocks and no more than 7 million into foreign. Also,at least half as much should be invested in foreign as domestic, and at least half as much in domestic as foreign to maintain some balance.