Andrew Is Ready to Invest $200,000 in Stocks and He

question 15

Essay

Andrew is ready to invest $200,000 in stocks and he has been provided nine different alternatives by his financial consultant. The following stocks belong to three different industrial sectors and each sector has three varieties of stocks each with different expected rate of return. The average rate of return taken for the past ten years is provided with each of the nine stocks.

The decision will be based on the constraints provided below:
-Exactly 5 alternatives should be chosen.
-One stock can have a maximum invest of $55,000.
-Any stock chosen must have a minimum investment of at least $25,000.
-For the Airlines sector, the maximum number of stocks chosen should be two.
-The total amount invested in Banking must be at least as much as the amount invested in Agriculture.
Now, formulate a model that will decide Andrew's investment strategy to maximize his expected annual return.

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Definitions:

Germantown

A historic area that was originally an independent town and is now a neighborhood within the city of Philadelphia, known for its rich history and cultural significance, especially in relation to early American history.

British Strategy

The methods and plans used by the United Kingdom in pursuit of military, political, or economic objectives, often reflecting the country's global interests, historical context, and geopolitical challenges.

New England

New England is a region located in the northeastern part of the United States, comprising six states: Maine, Vermont, New Hampshire, Massachusetts, Rhode Island, and Connecticut.

Potomac

A river in the Eastern United States, flowing into the Chesapeake Bay, and passing through Washington D.C.