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Q3. A business student has $2500 available to put into her self-directed brokerage account within her TFSA. She has identified three potential stocks in which
Q3. A business student has $2500 available to put into her self-directed brokerage account within her TFSA. She has identified three potential stocks in which to invest. The cost per share and expected return over the next two years is given in the table below. Stock A B Price/share $12 $15 $30 Return/share $6 $7 $15 a. Identify the decision variables. b. Formulate the objective function and constraints. c. Use Excel to determine the optimal number of share of each stock that she should purchase. Q3. A business student has $2500 available to put into her self-directed brokerage account within her TFSA. She has identified three potential stocks in which to invest. The cost per share and expected return over the next two years is given in the table below. Stock A B Price/share $12 $15 $30 Return/share $6 $7 $15 a. Identify the decision variables. b. Formulate the objective function and constraints. c. Use Excel to determine the optimal number of share of each stock that she should purchase
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