A business student has $2,500 available from a summer job and has identified three potential stocks in which to invest. The cost per share and expected return over the next two years are provided. Implement the accompanying linear optimization model on a spreadsheet and use Solver to find an optimal solution. Interpret the Solver Answer Report, identify the binding constraints, and verify the values of the slack variables. Implement the linear optimization model and find an optimal solution. Interpret the optimal solution.
The optimal solution is to purchase share(s) of stock A, share(s) of stock B, and share(s) of stock C. This solution gives the possible return, which is $(Type integers or decimals rounded to two decimal places as needed.)
Data and Linear Optimization Model
The cost per share and expected return over the next two years are shown.
The linear optimization model is as shown.
Maximize
Return = 9A + 5B + 13C
Subject to
11A + 14B + 25C ≤ 2,500
A, B, C ≥ 0
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