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?
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.
A) X2 ? 10000
X2 + X3 ? 350
B) 10,000 X2 ? 350X2 + 350X3
C) 47.25X2 ? 10,000
X2 + X3 ? 350
D) 47.25X2 ? 10,000
47.25 X2 + 110X3 ? 350
Answer: C
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