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Stock in Company A sells for $ 8 7 a share and has a 3 - year average annual return of $ 2 4 a
Stock in Company A sells for $ a share and has a year average annual return of $ a share. The beta value is Stock in Company B sells
for $ a share and has a year average annual return of $ a share. The beta value is Derek wants to spend no more than $
investing in these two stocks, but he wants to earn at least $ 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 represent the number of shares of stock in
Company and represent the total beta value.
subject to
Use integers or decimals for any numbers in the expressions. Do not include the $ symbol in your answers.
Derek should buy shares of stock in Company A and shares of stock in Company B
Round to the nearest integer as needed.
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