Stock in Company A sells for $95 a share and has a 3-year average annual return of $22 a share. The beta value is 1.05.

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Stock In Company A Sells For 95 A Share And Has A 3 Year Average Annual Return Of 22 A Share The Beta Value Is 1 05 1 (23.36 KiB) Viewed 23 times

Stock in Company A sells for $95 a share and has a 3-year average annual return of $22 a share. The beta value is 1.05. Stock in Company B sells for $83 a share and has a 3-year average annual return of $18 a share. The beta value is 1.20. 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 = 95a + 83b 22a + 18b a>0, b>0. (Use integers or decimals for any numbers in the expressions. Do not include the $ symbol in your answers.)