In this paper, the concept of Linear Programming (LP) was applied to Multigrow Insurance Company in Ghana which had a portfolio problem. The company had obtained GH₵ 200000 cash but had a difficulty in determining how much to invest in each of five investment areas in order to maximize return. Based on the data collected, the problem was formulated as a Linear Programming Problem and solved using Management Scientist Version 5 Software. Optimal portfolio mix was obtained for the Insurance Company. Finally, the total optimal return on the investments of the company was found to be GH₵ 15980. It is strongly recommended that the Company should adhere to the proposed optimal portfolio mix and also employ at least one operations researcher to assist the Company in its activities.
Keywords: Investment, Linear Programming, Optimal Portfolio Mix, Optimal Return., Portfolio
