Mr. Smith has some money to invest. He selected three stocks and two bond funds as possible investments, shown in the following table. Investment Stock A Stock B Stock C Bond-long term Bond-short term Risk High Medium Low Annual Return 15% 12% 9% 11% 8% One of Mr. Smith's investment requirements is "the total amount invested cannot exceed $500,000. Which option represents this constraint?

Mr. Smith has some money to invest. He selected three stocks and two bond funds as possible investments, shown in the following table. Investment Stock A Stock B Stock C Bond-long term Bond-short term Risk High Medium Low Annual Return 15% 12% 9% 11% 8% One of Mr. Smith's investment requirements is "the total amount invested cannot exceed $500,000. Which option represents this constraint?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

OX3+X512,500
OX₁ + X2 + X3 + X4+ X5 < 500,000
0.4X₁-0.4X2 +0.6X3-0.4X4 -0.4X5 <0
OX₁ + X₂ ≥ 12,000
OX4+X512,500
-0.4X₁ -0.4X2 + 0.6X3 > 0
O-0.6X₁-0.6X2-0.6X3 + 0.4X4 +0.4X5 20
OX3 < .40
OX₁ + X2₂ + X3 + X4 + X5 < 50,000

Mr. Smith has some money to invest. He selected three stocks and two bond funds as possible
investments, shown in the following table.
Investment
Stock A
Stock B
Stock C
Bond-long term
Bond-short term
Risk Annual Return
High
Medium
Low
15%
12%
9%
11%
8%
One of Mr. Smith's investment requirements is "the total amount invested cannot exceed
$500,000". Which option represents this constraint?
Note: (X₁, X₂, X₁, X₁, and X, are investment in stock A, stock B, stock C, long term bond and short
term bond, respectively

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