Financial Analysts, Inc , is an investment firm that manages stock portfolios for a number of clients A new client is requesting that the firm handle an $800,000 portfolio As an initial investment strategy, the client would like to restrict the portfolio to a mix of the following two stocks x numbe...

Financial Analysts, Inc., is an investment firm that manages stock portfolios for a number of clients. A

Question:

Financial Analysts, Inc., is an investment firm that manages stock portfolios for a number of clients. A new client is requesting that the firm handle an $800,000 As an initial investment strategy, the client would like to restrict the to a mix of the following two stocks:

Maximum Estimated Annual Return/Share Price/ Share Possible Investment Stock Oil Alaska Southwest Petroleum $50 $30 $6 $

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 $800,000.
(2) Maximum Oil Alaska investment is $500,000.
(3) Maximum Southwest Petroleum investment is $450,000.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...