(Solution) - For the investment situation apply the same logic as we -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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For the investment situation apply the same logic as we did for the Crebo Manufacturing model in the text to find the optimal solution. Compare your answer with the Solver solution.
A business student has $ 2,500 available from a summer job and has identified three potential stocks in which to invest. The cost per share and expected return over the next 2 years is given in the table.

a. Identify the decision variables, objective function, and constraints in simple verbal statements.
b. Mathematically formulate a linear optimization model. "