Question: DJS Investment Services must develop an investment portfolio for a new client. As an initial investment strategy, the new client would like to restrict the
DJS Investment Services must develop an investment portfolio for a new client. As an initial investment strategy, the new client would like to restrict the portfolio to a mix of two stocks:
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The client wants to invest $50,000 and established the following two investment goals:
Priority Level 1 Goal
Goal 1: Obtain an annual return of at least 9%.
Priority Level 2 Goal
Goal 2: Limit the investment in Key Oil, the riskier investment, to no more than 60% of the total investment.
a. Formulate a goal programming model for the DJS Investment problem.
b. Use the graphical goal programming procedure to obtain asolution.
Stock AGA Products Key Oil Price/Share $ 50 100 Estimated Annual Return (%) 6 10
Step by Step Solution
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There are 3 Steps involved in it
a Let x 1 number of shares of AGA Products purchased x 2 num... View full answer
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