ExerciseA business student has $2,500 available from a summer job and has identifiedthree potential stocks in which to invest. The cost per share and expectedreturn over the next two years are given in the table below.a. Identify the decision variables, the objective, and the constraints in simpleverbal statements.b. Develop a linear optimization model to determine the optimal investmentstrategy.Solve this LP problem using Excel Solver and state your recommendation.C.StockPrice/ShareReturn/ShareA$12$8B$15$7C$30$11

Amount available for investment = $2500 ABCPrice/share$12$15$30Return/share$8$7$11

Answered: A business student has $2,500 available…

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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A business student has $2,500 available from a summer job and has identified three potential stocks in which to invest. The cost per share and expected return over the next two years are given in the table below. Identify the decision variables the obiective and the constraints in simple