Stock in Company A sells for $87 a share and has a 3-year average annual return of $24 a share. The beta value is 1.22. Stock in Company B sells for $85 a share and has a 3-year average annual return of $17 a share. The beta value is 1.05. Derek wants to spend no more than $17,000 investing in these two stocks, but he wants to earn at least $2200 in annual revenue. Derek also wants to minimize the risk. Determine the number of shares of each stock that Derek should buy. Set up the linear programming problem. Let a represent the number of shares of stock in Company A, b represent the number of shares of stock in Company B, and z represent the total beta value. subject to Z= 87a+85b 24a+17b a≥0, b≥0. (Use integers or decimals for any numbers in the expressions. Do not include the $ symbol in your answers.)
Stock in Company A sells for $87 a share and has a 3-year average annual return of $24 a share. The beta value is 1.22. Stock in Company B sells for $85 a share and has a 3-year average annual return of $17 a share. The beta value is 1.05. Derek wants to spend no more than $17,000 investing in these two stocks, but he wants to earn at least $2200 in annual revenue. Derek also wants to minimize the risk. Determine the number of shares of each stock that Derek should buy. Set up the linear programming problem. Let a represent the number of shares of stock in Company A, b represent the number of shares of stock in Company B, and z represent the total beta value. subject to Z= 87a+85b 24a+17b a≥0, b≥0. (Use integers or decimals for any numbers in the expressions. Do not include the $ symbol in your answers.)
Algebra: Structure And Method, Book 1
(REV)00th Edition
ISBN:9780395977224
Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Publisher:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Chapter2: Working With Real Numbers
Section2.3: Rules For Addition
Problem 6P
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Transcribed Image Text:Stock in Company A sells for $87 a share and has a 3-year average annual return of $24 a share. The beta value is 1.22. Stock in Company B sells for $85 a share and has a 3-year average annual
return of $17 a share. The beta value is 1.05. Derek wants to spend no more than $17,000 investing in these two stocks, but he wants to earn at least $2200 in annual revenue. Derek also wants to
minimize the risk. Determine the number of shares of each stock that Derek should buy.
Set up the linear programming problem. Let a represent the number of shares of stock in Company A, b represent the number of shares of stock in Company B, and z represent the total beta value.
subject to
Z=
87a+85b
24a+17b
a≥0, b≥0.
(Use integers or decimals for any numbers in the expressions. Do not include the $ symbol in your answers.)
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