Suppose you have $16,000 to invest in three stocks, a, b, and c. stock a is a low-risk stock that has expected returns of 4%. stock b is a medium-risk stock that has expected returns of 5%. stock c is a high-risk stock that has expected returns of 6%. you want to invest at least $1,000 in each stock. to balance the risks, you decide to invest no more than $7,000 in stock c and to limit the amount invested in c to less than 4 times the amount invested in stock a. you also decide to invest less than twice as much in stock b as in stock a. how much should you invest in each stock to maximize your expected profit?

To solve this problem, let us say that:

money invested in stock A = A

money invested in stock B = B

money invested in stock C = C

The given problem states that:

C = A * (1 / 4) = 0.25 A

B = A * (1 / 2) = 0.50 A

It was stated that we only have $16,000 to invest. Therefore:

A + B + C = 16,000

Substituting values of C and B in terms of A:

A + 0.50 A + 0.25 A = 16,000

1.75 A = 16,000

A = $9,142.86

So C and B is:

C = 0.25 (9142.86)
C = $2285.71

B = 0.50 (9142.86)

B = $4571.43 

all you should have to do is insert 1 where the c is, representing that one car is sold.

f(c) = 250c + 500

f(1) = 250(1) + 500

f(1) = 250 + 500

f(1) = 750

he earns $750 for each car sold.

hope this you! have a happy , here's a turkey!