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Investment Advisors Inc. is a brokerage firm that manages stock portfolios for a number of clients. A particular portfolio consists of U shares of US
Investment Advisors Inc. is a brokerage firm that manages stock portfolios for a number of clients. A particular portfolio consists of U shares of US Oil and H shares of Huber Steel. The annual return for US oil is S3 per share and the annual return for Huber Steel is S5 per share. US Oil sells for $25 per share and Huber Steel sells for $50 per share. The portfolio has S80,000 to be invested. A risk index is used to control risk. The risk is 0.50 per share of US Oil and 0.25 per share of Huber Steel. The risk for the portfolio can be at most 700. In addition, the portfolio is limited to a maximum of 1000
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