Stock in Company A sells for $87 a share and has a 3-year average annual return of $24 a share. The beta value is 1.22. Stock in Company B sells for $85 a share and has a 3-year average annual return of $17 a share. The beta value is 1.05. Derek wants to spend no more than $17,000 investing in these two stocks, but he wants to earn at least $2200 in annual revenue. Derek also wants to minimize the risk. Determine the number of shares of each stock that Derek should buy. Set up the linear programming problem. Let a represent the number of shares of stock in Company A, b represent the number of shares of stock in Company B, and z represent the total beta value. subject to Z= 87a+85b 24a+17b a≥0, b≥0. (Use integers or decimals for any numbers in the expressions. Do not include the $ symbol in your answers.)
Stock in Company A sells for $87 a share and has a 3-year average annual return of $24 a share. The beta value is 1.22. Stock in Company B sells for $85 a share and has a 3-year average annual return of $17 a share. The beta value is 1.05. Derek wants to spend no more than $17,000 investing in these two stocks, but he wants to earn at least $2200 in annual revenue. Derek also wants to minimize the risk. Determine the number of shares of each stock that Derek should buy. Set up the linear programming problem. Let a represent the number of shares of stock in Company A, b represent the number of shares of stock in Company B, and z represent the total beta value. subject to Z= 87a+85b 24a+17b a≥0, b≥0. (Use integers or decimals for any numbers in the expressions. Do not include the $ symbol in your answers.)
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
Related questions
Question
Transcribed Image Text:Stock in Company A sells for $87 a share and has a 3-year average annual return of $24 a share. The beta value is 1.22. Stock in Company B sells for $85 a share and has a 3-year average annual
return of $17 a share. The beta value is 1.05. Derek wants to spend no more than $17,000 investing in these two stocks, but he wants to earn at least $2200 in annual revenue. Derek also wants to
minimize the risk. Determine the number of shares of each stock that Derek should buy.
Set up the linear programming problem. Let a represent the number of shares of stock in Company A, b represent the number of shares of stock in Company B, and z represent the total beta value.
subject to
Z=
87a+85b
24a+17b
a≥0, b≥0.
(Use integers or decimals for any numbers in the expressions. Do not include the $ symbol in your answers.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
