Recent Posts • Latest Topics • Unanswered Questions

An investor has $80,000 to invest in three stocks, stock A costs $100, stock B costs $120 and stock ...

Peryeeee

wrote...

Go to Answer

Posts: 291

Rep:

5 years ago

An investor has $80,000 to invest in three stocks, stock A costs $100, stock B costs $120 and stock ...

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:

The investor believes that the budget cannot be exceeded. (d1)
The risk factor should not exceed the target amount of 6000. (d2)
The average annual growth rate in stock prices must be at least 10%. (d3)
The investor desires a dividend income of at least $10,000. (d4)

Write the budget constraint

Textbook

Introduction to Management Science

Edition: 13^th

Author: Taylor

Read 61 times

1 Reply

Report

Replies

Answer verified by a subject expert

Chris R.

wrote...

Posts: 192

Rep:

5 years ago

More solutions for this book are available here

1 Vote

chachma

Report

Related Topics

Peryeeee Author

wrote...

5 years ago

Smart ... Thanks!

Helpmeplease11

wrote...

Yesterday

Thanks for your help!!

Shassta22

wrote...

2 hours ago

Good timing, thanks!

New Topic

Quick Reply

Explore

Post your homework questions and get free online help from our incredible volunteers

1069 People Browsing

Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook

Live Chat

Related Images

369

294

377

Your Opinion

Previous poll results: Who will win the 2024 president election?

Bonobos, Chimpanzees, and the 98% DNA Link

It's sore throat season, why does my mucus have red spots?

Strange Ingredients Lurking in Doritos Chips

Courses by Biology Forums

The Toxic Skin and Fungi Defense

Ready to ask a question on Biology Forums? Try it out

Join Our Community

Biology Forums - Study Force is a free online homework help service catered towards college and high school students. Get homework help and answers to your toughest questions in biology, chemistry, physics, mathematics, engineering, accounting, business, humanities, and more. Master your assignments quickly with thousands of step-by-step solutions to countless textbook questions asked and answered by our members. If we don't have your question, don't worry. You can ask any homework question and get expert homework help in as little as two hours.

Our extensive online study community is made up of college and high school students, teachers, professors, parents and subject enthusiasts who contribute to our vast collection of study resources: textbook solutions, study guides, practice tests, practice problems, lecture notes, equation sheets and more. With our help, your homework will never be the same!

Join for free today

How is Biology Forums - Study Force different than tutoring?

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.