ASSETALLOCATION Justin has decided to invest at most $ 60 , 000 in medium-risk and high-risk stockls.He has further decided that the medium-risk stocks shoul make up atleast 40 % of the total investment, while the high-risk stocks should make up at least 20 % of the total investment.He expects that the medium-risk stocks will appreciate by 12 % and the high-risk stocks will appreciate by 20 % within a year.How much money should Justin invest in each type of stock to maximize the value of his investment?What is the maximum value? Hint:Write the linear programmimg problem in the form of a standard maximization problem.
ASSETALLOCATION Justin has decided to invest at most $ 60 , 000 in medium-risk and high-risk stockls.He has further decided that the medium-risk stocks shoul make up atleast 40 % of the total investment, while the high-risk stocks should make up at least 20 % of the total investment.He expects that the medium-risk stocks will appreciate by 12 % and the high-risk stocks will appreciate by 20 % within a year.How much money should Justin invest in each type of stock to maximize the value of his investment?What is the maximum value? Hint:Write the linear programmimg problem in the form of a standard maximization problem.
Solution Summary: The author explains the simplex method for solving non-standard problems.
ASSETALLOCATION Justin has decided to invest at most
$
60
,
000
in medium-risk and high-risk stockls.He has further decided that the medium-risk stocks shoul make up atleast
40
%
of the total investment, while the high-risk stocks should make up at least
20
%
of the total investment.He expects that the medium-risk stocks will appreciate by
12
%
and the high-risk stocks will appreciate by
20
%
within a year.How much money should Justin invest in each type of stock to maximize the value of his investment?What is the maximum value?
Hint:Write the linear programmimg problem in the form of a standard maximization problem.
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