Problem -
Porter Investments needs to develop an investment portfolio for Mrs. Singh from the following list of possible investments:
|
Investment
|
Cost
|
Expected Return
|
|
A
|
$10,000
|
$700
|
|
B
|
$12,000
|
$1,000
|
|
C
|
$3,500
|
$390
|
|
D
|
$5,000
|
$500
|
|
E
|
$8,500
|
$750
|
|
F
|
$8,000
|
$640
|
|
G
|
$4,000
|
$300
|
Mrs. Singh has a total of $60,000 to invest. The following conditions must be met: (1) If investment F is chosen, then investment G must also be part of the portfolio, (2) at least four investments should be chosen, and (3) of investments A and B, exactly one must be included. Formulate and solve this problem using LP software to determine which stocks should be included in Mrs. Singh's portfolio.