any, a young MBA graduate, has up to $1000 stocks and loans. Investing in stocks yields a pront of 10 cents per dollar while investing in loa ields a profit of 5 cents per dollar. However, she must invest a minimum of 30% of her total investment in stocks, and she must invest at least $400 in loans. For n LP that can be used to maximize the total profit earned from Erica's investment. Enter the following values:
any, a young MBA graduate, has up to $1000 stocks and loans. Investing in stocks yields a pront of 10 cents per dollar while investing in loa ields a profit of 5 cents per dollar. However, she must invest a minimum of 30% of her total investment in stocks, and she must invest at least $400 in loans. For n LP that can be used to maximize the total profit earned from Erica's investment. Enter the following values:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Type your formulation for question 1 below.
Transcribed Image Text:Erica Cudahy, a young MBA graduate, has up to $1000 to invest in stocks and loans. Investing in stocks yields a profit of 10 cents per dollar while investing in loans
yields a profit of 5 cents per dollar. However, she must invest a minimum of 30% of her total investment in stocks, and she must invest at least $400 in loans. Formulate
an LP that can be used to maximize the total profit earned from Erica's investment. Enter the following values:
The total profit is
The amount invested in stocks is
The amount invested in stocks is
Type the mathematical model in Question 2 and submit the excel file in Question 3.
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