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Points: 0 of 1 Save Stock in Company A sells for $94 a share and has a 3-year average annual return of $25 a
Points: 0 of 1 Save Stock in Company A sells for $94 a share and has a 3-year average annual return of $25 a share. The beta value is 1.23. Stock in Company B sells for $87 a share and has a 3-year average annual return of $15 a share. The beta value is 1.07. Derek wants to spend no more than $18,000 investing in these two stocks, but he wants to earn at least $2800 in annual revenue. Derek also wants to minimize the risk. Determine the number of shares of each stock that Derek should buy. Set up the linear programming problem. Let a represent the number of shares of stock in Company A, b represent the number of shares of stock in Company B, and z represent the total beta value. subject to Z= 94a+87b 25a+15b a0, b0. (Use integers or decimals for any numbers in the expressions. Do not include the $ symbol in your answers.)
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