In a portfolio problem, X1, X2, and X3 represent number of shares bought of stocks 1, 2, an 3 which have selling prices of $15, $47.25, and $110, respectively. The investor stipulates that stock 1 must not account for more than 35% of number of shares bought. Which constraint is correct?
Answer
X1 = 0.35
X1 = 0.35 (50000)
X1 = 0.35(X1 + X2 +.X3)
X1 = 0.35(X1 + X2 +.X3)