An imvestor has idestificd two companies so inved in. Comguny t is an cutractive sompany, and Compasy 2 is a tech company. Congany 1 as carrently tradies for 540 per shaee, and Company 2 is currently trading for $25 ger ahase. If the ieveansent is whactaling, the investor cutimates that the prise of Ceargany 1 will po bo 555 per shane and Company 2 will go to 543 per share. The inventor has idenefied Congun 2 as the higher risk altensative. The investot is willing so invest a mavim of 590.000 in the nav companies from which it woald want to invest at least 515.000 it Coentury I and at least $10,000 in Company 2. Because of the higher risk assocuated with Cochpay 2, the invosior tas recommended that at moon $25,000 should be investod in Compacy 2. a. Formulate a lincar pregeramming model that can be used to deternieve the number of shares of Congany 1 and the mumber of shares of Compony 2 that will moct the investment constraints and masimire the tedal retum for the imestment. (12 Marks) b. Ginph the fravible rogion. (13 Marks) c. Determine the coordinanes of each extreme point. (4 marks). d. Find the optimal solution. (6 Marko) Esamples Mere than twe variables Fermulatien Which N ADMO coeld enly soonee 1000 gallons frun the international marlet. Sioce the anotent wituld of the siturien. The take helow prea a bredubun of the savinps thar will acone so the nurim, pockaging and cacharistin. mod to each regien te muximine savings to the nution. An imvestor has idestificd two companies so inved in. Comguny t is an cutractive sompany, and Compasy 2 is a tech company. Congany 1 as carrently tradies for 540 per shaee, and Company 2 is currently trading for $25 ger ahase. If the ieveansent is whactaling, the investor cutimates that the prise of Ceargany 1 will po bo 555 per shane and Company 2 will go to 543 per share. The inventor has idenefied Congun 2 as the higher risk altensative. The investot is willing so invest a mavim of 590.000 in the nav companies from which it woald want to invest at least 515.000 it Coentury I and at least $10,000 in Company 2. Because of the higher risk assocuated with Cochpay 2, the invosior tas recommended that at moon $25,000 should be investod in Compacy 2. a. Formulate a lincar pregeramming model that can be used to deternieve the number of shares of Congany 1 and the mumber of shares of Compony 2 that will moct the investment constraints and masimire the tedal retum for the imestment. (12 Marks) b. Ginph the fravible rogion. (13 Marks) c. Determine the coordinanes of each extreme point. (4 marks). d. Find the optimal solution. (6 Marko) Esamples Mere than twe variables Fermulatien Which N ADMO coeld enly soonee 1000 gallons frun the international marlet. Sioce the anotent wituld of the siturien. The take helow prea a bredubun of the savinps thar will acone so the nurim, pockaging and cacharistin. mod to each regien te muximine savings to the nution
