Investment Advisors, Inc., is a brokerage firm that manages stock portfolios for a number of clients. A particular portfolio consists of U shares of U.S. Oil and H shares of Huber Steel. The annual return for U.S. Oil is $3 per share and the annual return for Huber Steel is $5 per share. U.S. Oil sells for $25 per share and Huber Steel sells for $50 per share. The portfolio has $80,000 to be invested. The portfolio risk index (0.50 per share of U.S. Oil and 0.25 per share for Huber Steel) has a maximum of 700. In addition, the portfolio is limited to a maximum of 1000 shares of U.S. Oil. The linear Optimal Objective Value = 8400.00000 Solution a. U for U.S. Oil (decision variable) = 800H for Huber Steel (decisions variable) = 1200so then $25 per share x 800U = $20,000+ $50 per share x 1200H = $60,000Total $ 80,000Constraint 1is binding in this problem because the sensitivity report shows no slack AND,therefore, we know that the optimal solution requires us to use all $80,000 of the available funds.Constraint 2is also binding because the report shows no slack and that in turn tells us that wereached the risk maximum of 700 shares.Constraint 3is non-binding because of the slack (or 200 units) but also and more directly,because we won\'t ever need to use all 1000 shares allowed.Estimated Annual Return= $8400 in profit by purchasing 800 shares of U and 1200 sharesof H. In order to max out our objective function to $8,400 in profit, we need only purchase 800(not 1000) of these shares. b. Constraints 1 and 2.All funds available are being utilized and the maximum permissiblerisk is being incurred.Constraint 1is binding in this problem because the sensitivity report shows no slack AND,therefore, we know that the optimal solution requires us to use all $80,000 of the available funds.Constraint 2is also binding because the report shows no slack and that in turn tells us that wereached the risk maximum of 700 shares.