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An investment firm Yorktown Inc. is handling an $800000 portfolio for a client. The client would like to restrict the portfolio to a mix of
An investment firm Yorktown Inc. is handling an $800000 portfolio for a client. The client would like to restrict the portfolio to a mix of the following two stocks:
Stock | Price/Share | Estimated Annual Reutrn/Share |
Softmicro | $35 | $7 |
Zonam | $55 | $6 |
The maximum amount that the client would like to invest in Softmicro is $400000. The maximum amount that the client would like to invest in Zonam is $580000. Develop a mathematical model for maximizing the annual return.
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