An investor invests wants to invest up to $6 million in tech company stocks. The table below
describes his options.
Corporation
Type
Expected Annual Return (in $1000’s)
Cost of Block (in $1000’s)
Apple Bumble Cisco DTOL Esso Franlin Google
X 40 384
Y 64 432
Y 72 544
Z 96 800
X 88 560 Z 32 408 Z 60 720
Additional requirements of the investor:
(a) At least two type Z corporations should be included.
(b) No more than one type Y corporation should be included.
(c) Exactly one type X corporation should be included.
(d) If Bumble is included then Apple must also be included.
Subject to the above requirements, the investor would like to maximize expected annual returns. For- mulate the linear programming problem. Do not solve it.
Hint: Use the following variables
– XA = 1 if the investor invests in Apple, 0 otherwise.
– XB = 1 if the investor invests in Bumble, 0 otherwise. – XC = 1 if the investor invests in Cisco, 0 otherwise.
– XD = 1 if the investor invests in DTOL, 0 otherwise. – XE = 1 if the investor invests in Esso, 0 otherwise.
– XF = 1 if the investor invests in Franklin, 0 otherwise. – XG = 1 if the investor invests in Google, 0 otherwise.
An investor invests wants to invest up to $6 million in tech company stocks. The table below describes his options. Corp
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