suppose you have $16,000 to invest in three stocks, a, b, and c. stock a is a low - risk stock that has…

suppose you have $16,000 to invest in three stocks, a, b, and c. stock a is a low - risk stock that has expected returns of 4%. stock b is a medium - risk stock that has expected returns of 5%. stock c is a high - risk stock that has expected returns of 6%. you want to invest at least $1,000 in each stock. to balance the risks, you decide to invest no more than $7,000 in stock c and to limit the amount invested in c to less than 4 times the amount invested in stock a. you also decide to invest less than twice as much in stock b as in stock a. how much should you invest in each stock to maximize your expected profit? complete the constraints. stock a: x≥ stock b: y≥ and y≤2x stock c: 16 - x - y≥ 16 - x - y≤ 16 - x - y≤4x

suppose you have $16,000 to invest in three stocks, a, b, and c. stock a is a low - risk stock that has expected returns of 4%. stock b is a medium - risk stock that has expected returns of 5%. stock c is a high - risk stock that has expected returns of 6%. you want to invest at least $1,000 in each stock. to balance the risks, you decide to invest no more than $7,000 in stock c and to limit the amount invested in c to less than 4 times the amount invested in stock a. you also decide to invest less than twice as much in stock b as in stock a. how much should you invest in each stock to maximize your expected profit? complete the constraints. stock a: x≥ stock b: y≥ and y≤2x stock c: 16 - x - y≥ 16 - x - y≤ 16 - x - y≤4x

Answer

Explanation:

Step1: Analyze minimum - investment constraints

Since you want to invest at least $1,000 in each stock. For stock A with investment amount $x$, $x\geq1000$. For stock B with investment amount $y$, $y\geq1000$.

Step2: Analyze constraints for stock C

The amount invested in stock C is $z = 16000 - x - y$. Since you want to invest at least $1,000$ in stock C, $16000 - x - y\geq1000$. Also, you decide to invest no more than $7000$ in stock C, so $16000 - x - y\leq7000$. And since the amount invested in C is less than 4 times the amount invested in stock A, $16000 - x - y<4x$.

Answer:

Stock A: $x\geq1000$ Stock B: $y\geq1000$ and $y < 2x$ Stock C: $16000 - x - y\geq1000$, $16000 - x - y\leq7000$, $16000 - x - y<4x$