Question

Investment Advisors, Inc., is a brokerage firm that manages stock portfolios for a number of clients. A particular portfolio consists of U shares of U.S. Oil and H shares of Huber Steel. The annual return for U.S. Oil is $3 per share and the annual return for Huber Steel is $5 per share. U.S. Oil sells for $25 per share and Huber Steel sells for $50 per share. The portfolio has $80,000 to be invested. The portfolio risk index (0.50 per share of U.S. Oil and 0.25 per share for Huber Steel) has a maximum of 700. In addition, the portfolio is limited to a maximum of 1,000 shares of U.S. Oil.Optimal Objective Value = 8400.00000Variable Value Reduced Cost-------------- --------------- -----------------U 800.00000 0.00000H 1200.00000 0.00000Constraint Slack/Surplus Dual Value-------------- --------------- -----------------1 0.00000 0.093332 0.00000 1.333333 200.00000 0.00000 Objective Allowable AllowableVariable Coefficient Increase Decrease---------- ------------ ---------- ----------U 3.00000 7.00000 0.50000H 5.00000 1.00000 3.50000 RHS Allowable AllowableConstraint Value Increase Decrease---------- ------------ ---------- ----------1 80000.00000 60000.00000 15000.000002 700.00000 75.00000 300.000003 1000.00000 Infinite 200.00000The linear programming formulation that will maximize the total annual return of the portfolio is as follows:Max 3U + 5H Maximize total annual return s.t.25U + 50H < = 80000 Funds available0.50U + 0.25D< = 700 Risk maximum1U < = 1000 U.S. Oil maximumThe computer solution of this problem is shown.A. What is the optimal solution, and what is the value of the total annual return?B. Which constraints are binding? What is your interpretation of these constraints in terms of the problem?C. What are the dual values for the constraints? Interpret each.D. Would it be beneficial to increase the maximum amount invested in U.S. Oil? Why or why not?E. Calculate the range of optimaliy for C1, C2.

Answer 1

Answer:

The answer is Joe

Answer 2

Answer:

Monsters Inc.

Explanation: