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    Stock Brokers Linear Programming Problem

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    The stock brokerage firm has analyzed and recommended two stocks to an investors' club of college professors. The professors were interested in factors such as short-term growth, intermediate growth, and dividend rates. These data on each stock are as follows:

    Factor Louisana Gas & Power Trimex Insulation Co.

    Short-term growth .36 .24
    potential, per dollar

    Intermediate growth 1.67 1.50
    potential(over next 3
    yrs) per $ invested

    Dividend rate 4% 8%

    Each member of the club has an investment goal of 1)an appreciation of no less than $720 in the short term 2) an appreciation of least $5000 in the next 3 yrs and 3) a dividend income of at least $200 per year. What is the smallest investment that a professor can make to meet these three goals?

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    Solution Summary

    A stock investment problem is formulated as a LPP and solved by using solver of MS Excel.