use x=2 do manually dont use excel even graph If An investor is considering investing in two securities A and B which promise a return of(10+X)% and (20+X)%, respectively. The security A has a risk of 4 (on a scale of 0-10) whilethe other has a risk of 9. The investor has 31,00,000 available for investment and he expectsan average return of at least (12+X)% and wants the average risk factor not to exceed 6.Formulae the problem as n LPP and determine graphically the optimal investment plan for theinvestor. X = last digit of your roll no.по.

Given: Let we take x invest in A and y invest in B RA=12%RB=22%riskA=4riskB=9 Since, the investment…

Answered: If An investor is considering investing…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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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 $2000. On the other hand, he expects to make a(n) 15% profit from his investment in Company A and a(n) 18% 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. What are the (x,y) values? What is the optimal profit?
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 $2000. On the other hand, he expects to make a(n) 15% profit from his investment in Company A and a(n) 18% profit from his investment in Company B. Determine how much he should invest in the stock of each company (x dollars in Company A and y dollars in Company B) in order to maximize his investment returns.(x, y)= What is the optimal profit?$
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A private investment club has $200,000 earmarked for investment in stocks. To arrive at anacceptable overall level of risk, the stocks that management is considering have been classifiedinto three categories: high risk, medium risk, and low risk. Management estimates that high-riskstocks will have a rate of return of 15%/year; medium-risk stocks, 10%/year; and low-risk stocks,6%/year. The members have decided that the investment in low-risk stocks should be equal tothe sum of the investments in the stocks of the other two categories. Determine how much theclub should invest in each type of stock if the investment goal is to have a return of$20,000/year on the total investment. (Assume that all the money available for investment isinvested.)Note: Develop the linear system of equations from the above theory and solve the system byGauss Jordon Method.
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