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| Investments Discussions and questions about stock market investments, tax free savings, and high interest savings accounts. |
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The book does not help me figure out this problem.
An investor has decided to commit no more than Rs.160,000 to the purchase of the common stocks of two companies, company X and company Y. She has also estimated that there is a chance of at most 1% capital loss on her investment in company X and chance of at most 5% loss on company Y, She has decided that these losses should not exceed Rs.4900. On the other hand, She expects to make a 11% profit from company X and 13% from company Y. Determine how much he should invest in stock of each company in order to maximize his investment returns in company X and company Y. I got as far as figuring out this much: Let company X be A Let company Y be B Investment return H = (0.11)A + (0.13)B How do I set this problem up and solve? ---------------------------- Thanks & Regards Jacklin Jonse |
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