A financial broker is looking to invest in 4 volatile sectors of the market. After some research, he has developed the following program where the goal is to minimize risk. Risk: min x – 3x2 + 5(2x3 - 4) – 2x4 subject to: X1 + x2 + x3 = 2 X1 +x, 21 X, binary X2 binary X3 binary X, binary Part(a) What is the number of feasible solutions of this program? Justify your answer. Part(b) Find and report the optimal solution and its objective value. Show all the calculations.
A financial broker is looking to invest in 4 volatile sectors of the market. After some research, he has developed the following program where the goal is to minimize risk. Risk: min x – 3x2 + 5(2x3 - 4) – 2x4 subject to: X1 + x2 + x3 = 2 X1 +x, 21 X, binary X2 binary X3 binary X, binary Part(a) What is the number of feasible solutions of this program? Justify your answer. Part(b) Find and report the optimal solution and its objective value. Show all the calculations.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:A financial broker is looking to invest in 4 volatile sectors of the market. After some research, he has
developed the following program where the goal is to minimize risk.
Risk:min x, – 3x2 + 5(2x3 – 4) – 2x4
subject to:
x1 + x2 + x3 = 2
x1 +x4 2 1
x, binary
X2 binary
x3 binary
x4 binary
Part(a)
What is the number of feasible solutions of this program? Justify your answer.
Part(b)
Find and report the optimal solution and its objective value. Show all the
calculations.
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