3. (20 points) A Tacoma financial services allocates funds to: stocks, bonds, mutual funds, and cash. For each instrument, rate of return and risk are as shown: Total risk is limited to value based on client type. Currently we have a client with max risk tolerance of 0.5 . The company has the following guidelines: - No more than 70% of investment in stocks - Investment in mutual funds must be at least as much as in bonds - Amount of cash at least 8%, but no more than 25% In figuring out the optimal investment allocation for this client, please answer the following three questions: a. What are the decision variables? b. What is the objective function? c. List all the constraints. 3. (20 points) A Tacoma financial services allocates funds to: stocks, bonds, mutual funds, and cash. For each instrument, rate of return and risk are as shown: Total risk is limited to value based on client type. Currently we have a client with max risk tolerance of 0.5 . The company has the following guidelines: - No more than 70% of investment in stocks - Investment in mutual funds must be at least as much as in bonds - Amount of cash at least 8%, but no more than 25% In figuring out the optimal investment allocation for this client, please answer the following three questions: a. What are the decision variables? b. What is the objective function? c. List all the constraints