Question
A financial consultant needs to develop an investment portfolio for his client from the following list of possible investments: Investment Cost ( Expected Return ()
A financial consultant needs to develop an investment portfolio for his client from the following list of possible investments:
Investment
Cost ( Expected Return ()
A 5,000 500
B 8000 640
C 3500 390
D 10,000 700
E 8500 750
F 12,000 1,000
G 4,000 300
The client has a total of 30,000 to invest.The following conditions must be met:
oIf investment F is chosen, then investment G must also be part of the portfolio.
oAt least four of the investments must be chosen.
oOf investments A and B, exactly one must be included.
Required:
Formulate a 0-1 integer programming model for the problem.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started