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XYZ is an investment firm that manages stock portfolios for a number of clients. As an initial investment strategy, the client would like to restrict
XYZ is an investment firm that manages stock portfolios for a number of clients. As an initial investment strategy, the client would like to restrict the portfolio to a mix of the following two stocks:
Stock Price/Share
Estimated Annual Return/Share
Company 1 $320 $9 Company 2 $250 $4
Let
x = number of shares of company 1 y= number of shares of company 2
1- Develop the objective function, assuming that the client desires to maximize the total annual return.
2- Show the mathematical expression for the following constraint:
Total investment funds available are $900,000.
At least 100 shares of company 1 must be purchased.
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