Financial Analysts, Inc., is an investment firm that manages stock portfolios for a number of clients. Anew client requested that the firm handle an $80,000 portfolio. As an initial investment strategy, the client would like to restrict the portfolio to a mix of the following two stocks:

Let
x = number of shares of Oil Alaska
y = number of shares of Southwest Petroleum
a. Develop the objective function, assuming that the client desires to maximize the total annual return.
b. Show the mathematical expression for each of the following three constraints:
(1) Total investment funds available are $80,000.
(2) Maximum Oil Alaska investment is $50,000.
(3) Maximum Southwest Petroleum investment is$45,000.

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Stock Oil Alaska Southwest Petroleum Price/ Share S50 S30 Estimated Annual Return/Share $6 $4 Maximum Possible Investment $50,000 $45,000