What are the constraints, What are the constraints? Make

What are the constraints

Assignment Help Operation Management

Reference no: EM132206951

You have just inherited $100,000 from a relative, and you want to invest the money so that you get the maximum annual return you can. You are thinking of putting your money into two types of stock mutual funds. One fund S concentrates in social media companies, and the other fund I concentrates in companies that specialize in infrastructure construction and maintenance. You also are sensitive to risk in investment, so you visited a financial consultant to determine your risk tolerance. You are also worried that since social media isn’t a tangible product, you want to limit the number of shares you own in that mutual fund to be less than 1000. The table below summarizes the information you have at hand, per share.

cost for per shar risk(unit less) max share expected annoul return ($1000s)

social media : 50 0.25 1 5

insfrastructure : 30 0.75 7

total: 100,000 700 1000

a. What is the objective function? (make sure to use dimensional analysis to set it up

b. What are the decision variables (use NUN!)

c. What are the constraints? Make sure to use dimensional analysis to set them up.

d. Summarize the linear program in algebraic form. You do not need to include units here, but you should label your constraints.

Reference no: EM132206951

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