Suppose you would like to keep at least 75 shares of each of your eight stocks. Adjust
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Suppose you would like to keep at least 75 shares of each of your eight stocks. Adjust the formulation so that you sell no more than 75 shares of each stock, and solve the problem again.
- What is the new optimal solution? Give the values of the decision variables and the objective function value.
- What type of investors might prefer this solution over the previous one? What type of investor might prefer the previous solution over this one?
| Stock | Price Purchased | Current Price | Price Estimate Next Year | Shares Sold | Shares Left | Proceeds | Tax | Fee | Net | Remaining Value | |
| Yahoo! | $15.68 | $31.80 | $29.50 | 41.48885 | 75 | $1,319.35 | $200.64 | $13.19 | $1,105.51 | $2,212.50 | $18,765.75 |
| General Electric | $22.10 | $24.28 | $26.31 | 36.40854 | 75 | $884.00 | $23.81 | $8.84 | $851.35 | $1,973.25 | 8 |
| Microsoft | $30.39 | $32.50 | $34.55 | 49.11211 | 75 | $1,596.14 | $31.09 | $15.96 | $1,549.09 | $2,591.25 | TRUE |
| Bank of America | $8.93 | $14.16 | $15.23 | 19.3842 | 75 | $274.48 | $30.41 | $2.74 | $241.32 | $1,142.25 | TRUE |
| JPMorgan Chase | $40.55 | $50.99 | $62.43 | 73.72282 | 75 | $3,759.13 | $230.90 | $37.59 | $3,490.64 | $4,682.25 | TRUE |
| Cisco Systems, Inc. | $18.58 | $24.17 | $26.68 | 34.64613 | 75 | $837.40 | $58.10 | $8.37 | $770.92 | $2,001.00 | 32767 |
| Intel | $22.54 | $23.67 | $23.85 | 35.95872 | 75 | $851.14 | $12.19 | $8.51 | $830.44 | $1,788.75 | 0 |
| Pfizer | $24.84 | $28.77 | $31.66 | 42.51229 | 75 | $1,223.08 | $50.12 | $12.23 | $1,160.73 | $2,374.50 | |
| $10,000.00 | $18,765.75 |
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