Preview File Edit View Go Tools Window Help Sun Feb 28 12:21 PM Projects2021.pdf Page 5 of 6 Search Projects2021.pdf 5 Investment 3 Years have gone by, your prescriptive analytics techniques have helped Seahawk to make profit and consequently more cash in hand. The company has decided to invest in oil stock portfolio. In order to minimize the risks, the company has given the following specification for investment to your group. (i) At least two Texas oil firms must be in the portfolio (ii) No more than one investment can be made in foreign oil companies (iii) Exactly one of the two California oil stocks must be purchased (iv) If British Petroleum stock is included in the portfolio, then Trans-Texas Oil must also be included The company has up to $3 million available for investments. The table describes the various companies that Seahawk is considering. The objective is to maximize annual return on investment subject to the specified constraints. Company Name Expected Annual Cost for Block Return ($1,000's) of Shares ($1,000's) 50 480 4 Trans-Texas Oil British Petroleum 80 540 Dutch Shell 90 680 120 1,000 110 700 Houston Drilling Lonestar Petroleum (Texas) San Diego Oil California Petro 40 510 75 900 What is the portfolio that you recommend that maximizes the expected annual return. 5 5 36.750 28 tv W Preview File Edit View Go Tools Window Help Sun Feb 28 12:21 PM Projects2021.pdf Page 5 of 6 Search Projects2021.pdf 5 Investment 3 Years have gone by, your prescriptive analytics techniques have helped Seahawk to make profit and consequently more cash in hand. The company has decided to invest in oil stock portfolio. In order to minimize the risks, the company has given the following specification for investment to your group. (i) At least two Texas oil firms must be in the portfolio (ii) No more than one investment can be made in foreign oil companies (iii) Exactly one of the two California oil stocks must be purchased (iv) If British Petroleum stock is included in the portfolio, then Trans-Texas Oil must also be included The company has up to $3 million available for investments. The table describes the various companies that Seahawk is considering. The objective is to maximize annual return on investment subject to the specified constraints. Company Name Expected Annual Cost for Block Return ($1,000's) of Shares ($1,000's) 50 480 4 Trans-Texas Oil British Petroleum 80 540 Dutch Shell 90 680 120 1,000 110 700 Houston Drilling Lonestar Petroleum (Texas) San Diego Oil California Petro 40 510 75 900 What is the portfolio that you recommend that maximizes the expected annual return. 5 5 36.750 28 tv W