× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Management
New Topic  
Chinnab Chinnab
wrote...
Go to Answer
Posts: 672
Rep: 1 0
6 years ago
Write the budget constraint
 
  An investor has 80,000 to invest in three stocks, stock A costs 100, stock B costs 120 and stock C costs 80. Each stock A has a risk factor of 8, each stock B has a risk factor of 10 and each stock C has a risk factor of 7. The investor believes that the sum of the risk factors for all stocks purchase should not exceed 6000. The projected annual growth rate for the three stocks are 9, 13 and 8 respectively. The projected annual dividend income from these stocks are as follows: Stock A: 14/stock, Stock B: 15/stock, and Stock C: 20/stock. The investor desires an annual dividend income of 10,000. The investor has established the following goals in order of their importance:
 
  (1) The investor believes that the budget cannot be exceeded. (d1)
  (2) The risk factor should not exceed the target amount of 6000. (d2)
  (3) The average annual growth rate in stock prices must be at least 10. (d3)
  (4) The investor desires a dividend income of at least 10,000. (d4)
Read 52 times
1 Reply
Replies
Answer verified by a subject expert
Studyboy45Studyboy45
wrote...
#1
Top Poster
Posts: 933
Rep: 4 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
1

Related Topics

Chinnab Author
wrote...

6 years ago
Helped a lot
larrybrads
wrote...

Yesterday
Thanks
2ne1_12345
wrote...

2 hours ago
This site is awesome
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1001 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 238
  
 326
  
 349
Your Opinion
Who will win the 2024 president election?
Votes: 3
Closes: November 4
Previous poll results: Does a gender wage gap exist in America?