Question: 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 2 years is given in the table.
Stock A B C
Price/Share $25 $15 $30
Return/Share $8 $7 $11
a. Identify the decision variables, objective function, and constraints in simple verbal statements.
b. Mathematically formulate a linear optimization model.