A wealthy friend has recently been made aware that you have explored optimization as part of your QAC module. The friend is seeking assistance from you and would like you assist him with the number of shares he should buy between two shares.

Share A has expected returns of 10%, while share B has 12% as expected returns. The prices for each share are R150 and R175 respectively. Your friend has a budget of R175 000 to spend on these shares.

He would like to buy at least 300 shares in each company and a maximum of 750 shares. However, the number of shares in A should be at least twice as much as those in share B. How should he investment his money in order to achieve maximum returns given the criteria he has given you?

You are required to determine :

a. the objective equation. [1 mark]

b. the equations for the constraints. [5 marks]

c. the number of shares he will buy of each company. [2 marks]

d. the return/profit in Rands for his investment. [1 mark]