Challenge July-2024

Smart Investment                                                                                  Solutions

A client of an investment firm has $10000 available for investment. He has instructed that his money be invested in particular stocks, so that no more than $5000 is invested in any one stock but at least $1000 be invested in each stock. He has further instructed the firm to use its current data and invest in the manner that maximizes his overall gain during a one-year period. The stocks, the current price per share and the firm’s predicted stock price a year from now are summarized below:

StockCurrent  PriceProjected Price 1 year
ABC$25$35
XYZ$50$60
TTT$100$125
LMN$25$40

Your task is to create a decision model that can be used to make a smart investment while satisfying the client requirements for different combinations of stocks. Send your solutions to DecisionManagementCommunity@gmail.com.

Solutions: