Question: Investment Determination ( i . e . , decision variables ) : Calculate the $ amount invested in each stock: PGR , MSFT , and
Investment Determination ie decision variables:
Calculate the $ amount invested in each stock: PGR MSFT and AMZN.
Objective:
Maximize the overall value of dividend yield for the three stocks. The value of dividend yield for
a stock is obtained by multiplying the Dividend Yield by the amount invested in the stock.
Constraints:
The total investment across the three stocks should be equal to $
Ensure that the total value of oneyear return for all three stocks combined is greater than
$ The value of oneyear return for a stock is calculated by multiplying the year
return by the amount invested in the stock.
The total value of beta volatility for the three stocks combined should be less than
$ The value of beta volatility for a stock is calculated by multiplying the Beta by
the amount invested in the stock.
Total amount invested in MSFT should be at most two times more than the amount invested in
AMZN.
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