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

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b. Use the graphical goal programming procedure to obtain a solution. (1) x2 (i) x2 P2Goal PIGoal PIGoal Funds Funds Available Available PIGoal (2650, 0) 1100, 0) Previous Check My Work 3 more Check My Work uses remaining. Submit Assignment for Grading Save and Exit b. Use the graphical goal programming procedure to obtain a solution. (1) x2 (i) x2 P2Goal PIGoal PIGoal Funds Funds Available Available PIGoal (2650, 0) 1100, 0) Previous Check My Work 3 more Check My Work uses remaining. Submit Assignment for Grading Save and Exit b. Use the graphical goal programming procedure to obtain a solution. (1) x2 (i) x2 P2Goal PIGoal PIGoal Funds Funds Available Available PIGoal (2650, 0) 1100, 0) Previous Check My Work 3 more Check My Work uses remaining. Submit Assignment for Grading Save and Exit b. Use the graphical goal programming procedure to obtain a solution. (1) x2 (i) x2 P2Goal PIGoal PIGoal Funds Funds Available Available PIGoal (2650, 0) 1100, 0) Previous Check My Work 3 more Check My Work uses remaining. Submit Assignment for Grading Save and Exit b. Use the graphical goal programming procedure to obtain a solution. (1) x2 (i) x2 P2Goal PIGoal PIGoal Funds Funds Available Available PIGoal (2650, 0) 1100, 0) Previous Check My Work 3 more Check My Work uses remaining. Submit Assignment for Grading Save and Exit b. Use the graphical goal programming procedure to obtain a solution. (1) x2 (i) x2 P2Goal PIGoal PIGoal Funds Funds Available Available PIGoal (2650, 0) 1100, 0) Previous Check My Work 3 more Check My Work uses remaining. Submit Assignment for Grading Save and Exit

Answer rating: 100% (QA)

Investment G... View the full answer