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and had a risk index of 2 . 0 , while Chevron Corp ( CVX ) stock cost $ 1 0 0 per share, was
and had a risk index of while Chevron Corp CVX stock cost $ per share, was expected to yield per year in dividends, and had a risk index of You have up to $ to invest in these stocks and would like to earn at least $ in dividends over the course of a year. Assume the dividend to be unchanged for the year. How many shares of each stock should you purchase to meet your requirements and minimize the total risk index for your portfolio? Assume the total risk index is calculated by adding the products of each risk index and the associated number of shares.
Let number of PAA shares, let number of CVX shares, and let risk index. Determine the objective and the constraints needed to solve the problem.
Objective
Constraints
Graph the feasible region and determine the coordinates of all corner points. Round your answers to the nearest integer.
smallest value
largest value The minimum value of occurs at which corner point?
State the minimum value of
How many shares of each stock should you purchase to meet your requirements and minimize the total risk index for your portfolio?
Plains All American Pipeline LPPAA shares
Chevron Corp CVX
shares
What is the minimum total risk index?
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