An investment strategy restricts the portfolio to a mix of two stocks A and B with the following price/share and annual returns: Stock Price/Share Annual Return

A $35 5%

B $45 7% Assume that the maximum amount available for investment is $100,000 with the following 2 prioritized investment goals: Priority 1 Goal: Obtain an annual return of at least 6%. Priority 2 Goal: limit the investment in stock B to no more than 55% of the total investment. Assume X₁ = dollar amount allocated to stock A, and X₂ = dollar amount allocated to stock B. Refer to Figure 1. What is the objective function?

What is the objective function?

Min d1' +d2 Min d1' +d2