An investment company manages portfolios of stocks, bonds, and other investment alternatives. One of the company's clients would like to invest $200,000 in stocks. The client is interested in four specific stocks - A, B, C, and/or D. The company gathered the following relevant financial data for the four stocks: Stock A S100 0.12 Stock B S50 0.08 Stock C Price per share Annual rate of Stock D $40 0.10 S80 0.06 return Risk measure 0.10 0.07 0.05 0.08 per dollar invested Based on the above data, the investor has stipulated the following investment guidelines: 1. The entire amount of $200,000 must be invested. 2. The annual rate of return must be at least 9% of the invested capital of $200,000. 3. Not every stock has to be purchased, however, if selected, no one stock can account for more than 50% of the total dollar investment. 4. The total investment in stocks A and B combined must be equal to or greater than the total investment in stocks C and D combined.
An investment company manages portfolios of stocks, bonds, and other investment alternatives. One of the company's clients would like to invest $200,000 in stocks. The client is interested in four specific stocks - A, B, C, and/or D. The company gathered the following relevant financial data for the four stocks: Stock A S100 0.12 Stock B S50 0.08 Stock C Price per share Annual rate of Stock D $40 0.10 S80 0.06 return Risk measure 0.10 0.07 0.05 0.08 per dollar invested Based on the above data, the investor has stipulated the following investment guidelines: 1. The entire amount of $200,000 must be invested. 2. The annual rate of return must be at least 9% of the invested capital of $200,000. 3. Not every stock has to be purchased, however, if selected, no one stock can account for more than 50% of the total dollar investment. 4. The total investment in stocks A and B combined must be equal to or greater than the total investment in stocks C and D combined.
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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Q3. What are the objective coefficient ranges for the four stocks? Show the relevant portion of the Solver’s output. Fully interpret these ranges.
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