Simplex Method - Maximize return on investment
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Natsano has at most $50,000 to invest in common stocks of two companies. He estimates that an investment in company A will yield a return of 10%, whereas an investment in company B, which he feels is a riskier investment, will yield a return of 20%. If he decides that his investment in the stock of company A is to exceed his investment in the stock in company B by at least $20,000, determine how much he should invest in the stock of each company in order to maximize the return on his investment.
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Solution Summary
The posting helps with a question incoming simplex method for solving nonstandard problems. This solution determines how much should be invested in the stock of each company in order to maximize the return on Natsano's investment. Step by step calculations are provided.
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Natsano has at most $50,000 to invest in common stocks of two companies. He estimates that an investment in company A will yield a return of 10%, whereas an investment in company B, which he feels is a riskier investment, ...
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