Maximize expected retur

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Stockbroker Susan Drexler has advised her client as shown in the following table: Investment Cost (Thousands) Expected return (Thousands) Andover municipal bonds $400 $35 Hamilton city bonds $ 1,000 $100 East power & light co $350 $ 30 Nebraska Electric $700 $ 65 Southern Gas $ 490 $ 45 Manuel Products Co. $270 $20 Builders Paint Co. $ 800 $90 Rest Easy Hotels Co. $500 $ 50 The client agrees to this but provides several conditions: 1) No more than $3,000,000 can be invested, 2) the money is to be spread among at least 5 investments, 3) no more than one type of bond can be purchased, 4) at least 2 utility stocks must be purchased, and 5) at least two regular stocks must be purchased. Formulate this as a 0-1 IP problem for Ms. Drexter to maximize expected return. Solve by using Excel

Reference no: EM13700290

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