An inventor wants to maximize his profit form an investment in three stocks: A, B, & C, with a profit of the respective investment: 10%, 8%, & 6% respectively. Stock A is the profitable one, so stock A will get at most 40% of the total investments, while investment in stock B has a weight at least 30% of A, and C investments together. A market study shows that the demand of stock C will rise and the respective investment should be at least 2000$. The investor has a budget of $10000. The investor objective is to maximize the profit. Formulate this as a linear programming problem.
An inventor wants to maximize his profit form an investment in three stocks: A, B, & C, with a profit of the respective investment: 10%, 8%, & 6% respectively. Stock A is the profitable one, so stock A will get at most 40% of the total investments, while investment in stock B has a weight at least 30% of A, and C investments together. A market study shows that the demand of stock C will rise and the respective investment should be at least 2000$. The investor has a budget of $10000. The investor objective is to maximize the profit. Formulate this as a linear programming problem.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section: Chapter Questions
Problem 52P
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An inventor wants to maximize his profit form an investment in three stocks: A, B, & C, with a
profit of the respective investment: 10%, 8%, & 6% respectively. Stock A is the profitable one, so
stock A will get at most 40% of the total investments, while investment in stock B has a weight
at least 30% of A, and C investments together. A market study shows that the demand of stock C
will rise and the respective investment should be at least 2000$. The investor has a budget of
$10000. The investor objective is to maximize the profit.
Formulate this as a linear programming problem.
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