Question
Use the method of corners to solve the linear programming problem. An investor has decided to commit no more than $80,000 to the purchase of
Use the method of corners to solve the linear programming problem.
An investor has decided to commit no more than $80,000 to the purchase of the common stocks of two companies, Company A and Company B. He has also estimated that there is a chance of at most a 1% capital loss on his investment in Company A and a chance of at most a 4% loss on his investment in Company B, and he has decided that these losses should not exceed $2,000. On the other hand, he expects to make an 11% profit from his investment in Company A and a 21% profit from his investment in Company B. Determine how much he should invest in the stock of each company (x dollars in Company A and y dollars in Company B) in order to maximize his investment returns.
(x,y)= (__)
What is the maximum return (in dollars)
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