Question
Maximize your return on investment, by investing up to $1,000,000 on the following stocks. You need to determine how many stocks of each company to
Maximize your return on investment, by investing up to $1,000,000 on the following stocks. You need to determine how many stocks of each company to buy (number of stocks has to be an integer)
Stock | Price/Share | Expected Return | Risk | |
1 | Trans-Texas oil | $35 | 10% | 9% |
2 | British Petroleum | $40 | 13% | 14% |
3 | Dutch Oil | $28 | 12% | 11% |
4 | Houston, Texas Oil | $19 | 16% | 15% |
5 | Texas Petroleum | $50 | 11% | 12% |
6 | San Diego California Oil | $25 | 12% | 12% |
7 | California Oil | $10 | 15% | 13% |
-Investment is foreign oil companies must be at-least 30% of the investment in the US companies
-Every company should get at-least 10% total
-Total possible amount of loss should be less than 12% of the total money
-Investment in California Oil Companies should be more than the investment in Texas oil companies.
-What is the Expected Return ? What is the total risk ? Do we have any slack? Where and How much?
Please show in Excel Solver
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started