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LiRa [457]
3 years ago
6

In a portfolio problem, X1, X2, and X3 represent the number of shares purchased of stocks 1, 2, and 3, which have selling prices

of $15, $47.25, and $110, respectively. The investor has up to $50,000 to invest. The stockbroker suggests limiting the investments so that no more than $10,000 is invested in stock 2 or the total number of shares of stocks 2 and 3 does not exceed 350, whichever is more restrictive. How would this be formulated as a linear programming constraint
Business
1 answer:
vaieri [72.5K]3 years ago
7 0

Answer:

The correct solution is "x_1 \leq 0.35 (x_1 + x_2 + x_3)".

Explanation:

According to the question,

Let,

For stock 1,

The number of shares to be purchased will be "x_1".

For stock 2,

The number of shares to be purchased will be "x_2".

For stock 3,

The number of shares to be purchased will be "x_3".

then,

The cumulative number of shares throughout stock 1 would be well over or equivalent towards the approximate amount of all the shares or stocks for the set limit.

i.e., x_1+x_2+x_3

Thus the correct equation is "x_1 \leq 0.35(x_1+x_2+x_3)".

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