7.Investment Advisors, Inc., is a brokerage firm that manages stock portfolios for a numberof clients. A particular portfolio consists of U shares of U.S. Oil and H shares of HuberSteel. The annual return for U.S. Oil is $3 per share and the annual return for Huber Steelis $5 per share. U.S. Oil sells for $25 per share and Huber Steel sells for $50 per share.The portfolio has $80,000 to be invested. The portfolio risk index (0.50 per share of U.S.Oil and 0.25 per share for Huber Steel) has a maximum of 700. In addition, the portfoliois limited to a maximum of 1000 shares of U.S. Oil. The linear programming formulationthat will maximize the total annual return of the portfolio is as follows:Маx3U +5HMaximize total annual returns.t.25U + 50H < 80,000Funds available0.50U + 0.25D <700 Risk maximum1U< 1000 U.S. Oil maximumU, H > 0

Given, Max 3U+5H s.t 25U+50H <= 80000 0.5U+0.25D <= 700 U <= 1000 U,H >= 0

Answered: 7. Investment Advisors, Inc., is a…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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