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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:

Estimated Annual
Stock Price/Share Return (%)
AGA Products $ 50 6
Key Oil 100 10

The client wants to invest $55,000 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.

Formulate a goal programming model for the DJS Investment problem. If you don't need the variable in the model, enter "0". If you need a negative number, enter minus sign with it.

Let
x1 = number of shares of AGA Products purchased
x2 = number of shares of Key Oil purchased
Min ____P1(d1-) + ____P2(d2+)
s.t.
____x1 + ____x2 ? ____ Funds available
____x1 + _____x2 + _____d1+ + ____d1- = ____ P1 Goal
_____x1 + _____x2 + _____d2+ + _____d2- = _____ P2 Goal
x1, x2, d1+, d1-, d2+, d2- ? 0

image text in transcribedimage text in transcribed

b. Use the graphical goal programming procedure to obtain a solution. (i) (ii) P2Goal PIGoal Availa 1100.0) 3 more Check My work uses remaining. Check My Work P2Godl save and submit Assignment

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