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An investor has $10,000 available for investment. He has instructed his investment firm that his money be invested in three stocks, A, B, C, so
An investor has $10,000 available for investment. He has instructed his investment firm that his money be invested in three stocks, A, B, C, so that no more than $5000 is invested in any one stock but at least $1,000 is invested in each stock. Since lie perceives stock A to have the highest potential for appreciation but also the highest risk, he wants to have invested in that stock an amount that does not exceed the combined amount invested in the other two stocks. In addition, he wants the firm to use its current data and invest in a manner that maximizes the expected overall gain during a one-year period. The stocks, the current price per share, and the firm's projected stock price a year from now are summarized in the following table: Formulate a linear programming model for the investment company (define variables and write the objective function and constraints). An investor has $10,000 available for investment. He has instructed his investment firm that his money be invested in three stocks, A, B, C, so that no more than $5000 is invested in any one stock but at least $1,000 is invested in each stock. Since lie perceives stock A to have the highest potential for appreciation but also the highest risk, he wants to have invested in that stock an amount that does not exceed the combined amount invested in the other two stocks. In addition, he wants the firm to use its current data and invest in a manner that maximizes the expected overall gain during a one-year period. The stocks, the current price per share, and the firm's projected stock price a year from now are summarized in the following table: Formulate a linear programming model for the investment company (define variables and write the objective function and constraints)
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