# Stock Brokers Linear Programming Problem

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

invested

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.