The following table is a list of all of the stocks that you have in your stock portfolio. The original purchase price, current price and your best guess for the "anticipated" price (one year into the future) is given below:
|
|
|
Share Price ($)
|
|
Stock #
|
Shares Owned
|
Purchase
|
Current
|
Expected In One Year
|
|
1
|
234
|
20
|
30
|
36
|
|
2
|
272
|
25
|
34
|
39
|
|
3
|
106
|
30
|
43
|
42
|
|
4
|
452
|
35
|
47
|
45
|
|
5
|
486
|
40
|
49
|
51
|
|
6
|
359
|
45
|
53
|
55
|
|
7
|
345
|
50
|
60
|
63
|
|
8
|
419
|
55
|
62
|
64
|
|
9
|
255
|
60
|
64
|
66
|
|
10
|
264
|
65
|
66
|
70
|
Assume that the capital gains tax rate on long term profits is 20%. In addition, selling shares incurs a transaction cost of 1% of the sale proceeds.
Suppose that you need at least $30,000 in cash today. As such, you must sell off some of your stocks.
Create an integer linear program that tells you how many shares of which stock to sell in order to get the cash you need such that the anticipated future portfolio value of the remaining stocks is maximized.