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A client approached a stockbroker in an economy where stocks are sold in a stock market. The client has the following request to the broker:
A client approached a stockbroker in an economy where stocks are sold in a stock market. The client has the following request to the broker: Invest $ 100,000 for maximum annual income under the following conditions:
a. Spread the investment over no more than three different stocks.
b. put no more than 40% of the investment in to any stock.
c. put a minimum of $10,000 in to oil stock.
Stock | Price per share | Estimated annual return per share |
Oil | $120 | $11 |
Auto | 52 | 4 |
Health | 18 | 2 |
Formulate an LP model of the problem.
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