Assume that x2, x7 and x8 are the dollars invested in three different common stocks from New York stock exchange. In order to diversify the investments, the investing company requires that no more than 60% of the dollars invested can be in "stock two". The constraint for this requirement can be written as: Answer a) .4x2.6x7 - .6x8 = 0 b) x2 = .60 (x2+x7 + x8) c) .4x2 .6x7 - .6x8 = 0 - d) -.4x2 + .6x7 + .6x8 = 0

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 38P: Suppose you are borrowing 25,000 and making monthly payments with 1% interest. Show that the monthly...
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Assume that x2, x7 and x8 are the
dollars invested in three different
common stocks from New York
stock exchange. In order to
diversify the investments, the
investing company requires that no
more than 60% of the dollars
invested can be in "stock two". The
constraint for this requirement can
be written as:
Answer
a) .4x2.6x7 - .6x8 = 0
b) x2 = .60 (x2+x7 + x8)
c) .4x2 .6x7 - .6x8 = 0
-
d) -.4x2 + .6x7 + .6x8 = 0
Transcribed Image Text:Assume that x2, x7 and x8 are the dollars invested in three different common stocks from New York stock exchange. In order to diversify the investments, the investing company requires that no more than 60% of the dollars invested can be in "stock two". The constraint for this requirement can be written as: Answer a) .4x2.6x7 - .6x8 = 0 b) x2 = .60 (x2+x7 + x8) c) .4x2 .6x7 - .6x8 = 0 - d) -.4x2 + .6x7 + .6x8 = 0
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