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Problem 4 (10 points): Goal Programming AQC Investment Services must develop an investment portfolio for a new client. As an initial investment strategy, the new
Problem 4 (10 points): Goal Programming AQC 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: Price/Share (S/share) Estimated Annual Return (%) Stock $50 $100 AGA Products 6% Key Oil 10% The client has $50,000 to invest and has established the following two weighted investment goals: Goal 1: Obtain an annual return of at least 9%. Weight factor = 2 per dollar Goal 2: Limit the investment in Key Oil (the riskier investment) to no more than 60% of the total investment. Weight factor = 1 per 10 dollars Formulate the corresponding goal programming model for the DJS Investment Services and solve it in Excel. Remember to provide your Excel layout and answer report Problem 4 (10 points): Goal Programming AQC 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: Price/Share (S/share) Estimated Annual Return (%) Stock $50 $100 AGA Products 6% Key Oil 10% The client has $50,000 to invest and has established the following two weighted investment goals: Goal 1: Obtain an annual return of at least 9%. Weight factor = 2 per dollar Goal 2: Limit the investment in Key Oil (the riskier investment) to no more than 60% of the total investment. Weight factor = 1 per 10 dollars Formulate the corresponding goal programming model for the DJS Investment Services and solve it in Excel. Remember to provide your Excel layout and answer report
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