Problem: Peters Financial needs to develop an investment portfolio for Mrs. Charles from the following list of possible investments.
|
Investment
|
Cash Required ($)
|
Expected Annual Return ($)
|
|
A
|
5,000
|
500
|
|
B
|
8,000
|
640
|
|
C
|
3,500
|
390
|
|
D
|
10,000
|
700
|
|
E
|
8,500
|
750
|
|
F
|
12,000
|
1,000
|
|
G
|
4,000
|
300
|
Ms. Charles has a total of $30,000 to invest. The following conditions must be met:
• If Investment F is chosen, then Investment G must also be part of the portfolio.
• Only one of investments, A or B, can be included.
Which stocks should be included in Ms. Charles’ portfolio?