Homework 8: Shelly Mednick Investment Problem

Shelley Mednick has decided to give the stock market a try invest in

-A number of shares of TCS purchased. TCS is a communication company stock and or

-An ammount of money invested in MFI. MFI is a mutual fund

Shelley is a cautious investor. She sets limits on the level of investments (minimize total investments), and a modest goal for gain for the year.

Data

TCS is been sold now for $50 a share

TCS is projected to sell for $65 a share in a year

MFI is predicted to yield 10% annual return 10%

Restrictions

Expected return should be at least $250.

The maximum amount invested in TCS is not to exceed 40 % of the total investment.

The maximum amount invested in TCS is not to exceed $750.

Formulate and solve (using Lingo software) this problem as a mixed linear programming model. You should define precisely the used decision variables.