D E F G H I 1 Problem 6-18 Andover Hamilton EasyNebraska Southern Manuel Builders Rest 4 Invest? (1 = Yes) 5 Exp retum (5000) 6 Constraints: 7 Cost (5000) 8 No more than 1 bond 9 At least two utility 10 At least two regular 11 At least five total 12 LHS Sign RHS Stockbroker Susan Drexler has advised her client as shown in the table below. 18 PRENS The client agrees to this list but provides several conditions: (1) No more than $3,000,000 can be invested, (2) the money is to be spread among at least five investments, (3) no more than one type of bond can be purchased, (4) at least two utility stocks must be purchased, and (5) at least two regular stocks must be purchased. Formulate this as a 0-1 IP problem for Ms. Drexler to maximize expected return. Solve it by using Excel Expected Cost Return (thousand (thousand $35 $400 $1,000 $100 $350 Andover municipal 26 bonds 27 Hamilton city bonds East Power & Light 28 Co. Nebraska Electric 29 Service Southern Gas and 30 Electric 31 Manuel Products Co. 32 Builders Paint Co. 33 Rest Easy Hotels Co. 34 5700 $65 545 $20 $490 5270 5800 5500 590 550 35 36 D E F G H I 1 Problem 6-18 Andover Hamilton EasyNebraska Southern Manuel Builders Rest 4 Invest? (1 = Yes) 5 Exp retum (5000) 6 Constraints: 7 Cost (5000) 8 No more than 1 bond 9 At least two utility 10 At least two regular 11 At least five total 12 LHS Sign RHS Stockbroker Susan Drexler has advised her client as shown in the table below. 18 PRENS The client agrees to this list but provides several conditions: (1) No more than $3,000,000 can be invested, (2) the money is to be spread among at least five investments, (3) no more than one type of bond can be purchased, (4) at least two utility stocks must be purchased, and (5) at least two regular stocks must be purchased. Formulate this as a 0-1 IP problem for Ms. Drexler to maximize expected return. Solve it by using Excel Expected Cost Return (thousand (thousand $35 $400 $1,000 $100 $350 Andover municipal 26 bonds 27 Hamilton city bonds East Power & Light 28 Co. Nebraska Electric 29 Service Southern Gas and 30 Electric 31 Manuel Products Co. 32 Builders Paint Co. 33 Rest Easy Hotels Co. 34 5700 $65 545 $20 $490 5270 5800 5500 590 550 35 36