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?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcdff506b-78ca-4fe2-a93e-6b1e4e0ed3fb%2Fad8733ef-9369-4b01-8006-48885cf064ee%2F22k9uow_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcdff506b-78ca-4fe2-a93e-6b1e4e0ed3fb%2Fad8733ef-9369-4b01-8006-48885cf064ee%2Frwlpl6n.jpeg&w=3840&q=75)
Transcribed Image Text: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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