A individual has $300 000 to invest across a range of companies, A, B and C. The table shows the expected percentage risk, dividend and growth in each company
The individual wants to invest all of the $300 000 with minimum risk, but wants to make sure that the expected dividend is at least 10% and growth is at least 15% of the investment.
(a) If x and y denote the amount invested in company A and company B, respectively, show that the problem may be formulated as:
(b) Solve the linear programming problem in part (a) to work out the optimal investment in companies A, B and C.
