Problem 14-02 (Algorithmic) DJS Investment Services must develop an investment p
ID: 371389 • Letter: P
Question
Problem 14-02 (Algorithmic)
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:
The client wants to invest $60,000 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 45% 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.
Use the graphical goal programming procedure to obtain a solution.
x2
x1
x2
x1
x2
x1
x2
x1
Estimated Annual Stock Price/Share Return (%) AGA Products $ 50 6 Key Oil 100 10Explanation / Answer
Hi,
Thanks for the question.
4 P's define the marketing strategy for any company or for a particular brand. This is the strategy to reach and market the product to the customers.
The 4 P's will be:
Product: As mentioned, the product for this particular scenario will be McChicken and Big Mac.
Price: Price generally should be according to the perception of the customers to see its worth. They should consider to price the product moderately not on a low price because that would give the feel as the quality compromised.
Place: That should be very evenly distributed across the outlets in the US. The product will be very popular so the company should be very efficient in the distribution.
Promotions: Mcdonald's is very aggressive in terms of the advertising mostly in the Tv advertisement or OOH branding.