An investor has decided to commit no more than $80,000 to the purchase of the common stocks of two companies, Company A and Company B. He has also estimated that there is a chance of at most a 1% capital loss on his investment in Company A and a chance of at most a 4% loss on his investment in Company B, and he has decided that these losses should not exceed $2000. On the other hand, he expects to make a(n) 15% profit from his investment in Company A and a(n) 18% profit from his investment in Company B. Determine how much he should invest in the stock of each company (x dollars in Company A and y dollars in Company B) in order to maximize his investment returns.(x, y)= What is the optimal profit?$
An investor has decided to commit no more than $80,000 to the purchase of the common stocks of two companies, Company A and Company B. He has also estimated that there is a chance of at most a 1% capital loss on his investment in Company A and a chance of at most a 4% loss on his investment in Company B, and he has decided that these losses should not exceed $2000. On the other hand, he expects to make a(n) 15% profit from his investment in Company A and a(n) 18% profit from his investment in Company B. Determine how much he should invest in the stock of each company (x dollars in Company A and y dollars in Company B) in order to maximize his investment returns.
(x, y)
=
What is the optimal profit?
$
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![Algebra and Trigonometry (6th Edition)](https://www.bartleby.com/isbn_cover_images/9780134463216/9780134463216_smallCoverImage.gif)
![Contemporary Abstract Algebra](https://www.bartleby.com/isbn_cover_images/9781305657960/9781305657960_smallCoverImage.gif)
![Linear Algebra: A Modern Introduction](https://www.bartleby.com/isbn_cover_images/9781285463247/9781285463247_smallCoverImage.gif)
![Algebra and Trigonometry (6th Edition)](https://www.bartleby.com/isbn_cover_images/9780134463216/9780134463216_smallCoverImage.gif)
![Contemporary Abstract Algebra](https://www.bartleby.com/isbn_cover_images/9781305657960/9781305657960_smallCoverImage.gif)
![Linear Algebra: A Modern Introduction](https://www.bartleby.com/isbn_cover_images/9781285463247/9781285463247_smallCoverImage.gif)
![Algebra And Trigonometry (11th Edition)](https://www.bartleby.com/isbn_cover_images/9780135163078/9780135163078_smallCoverImage.gif)
![Introduction to Linear Algebra, Fifth Edition](https://www.bartleby.com/isbn_cover_images/9780980232776/9780980232776_smallCoverImage.gif)
![College Algebra (Collegiate Math)](https://www.bartleby.com/isbn_cover_images/9780077836344/9780077836344_smallCoverImage.gif)