Question

A student saves $2500 from a summer job and wants to invest it among three stocks. Stock A costs $30/share and returns $1 over a year. Stock B costs $100/share and returns $5 over a year. Stock C costs $50/share and returns $4 over a year. Let X1, X2 and X3 represent the quantities purchased of stocks A, B and C (fractional purchases are allowed). Which of the following statements is true?

The objective maximizes (X1 + 5X2 + 4X3).

The constraint X1 >= 0 is not needed in the formulation.

The objective maximizes 2500(X1 + X2 + X3).

X1 <= 2500X2 is a constraint in the formulation

Answer 1