37) Bhavika Investments, a group of financial advisors and retirement planners, has been requested to provide advice on how to invest $200,000 for one of its clients. The client has stipulated that the money must be put into either a stock fund or a money market fund, and the annual return should be at least $14,000. Other conditions related to risk have also been specified, and the following linear program was developed to help with this investment decision: total investment is $200,000 return must be at least $14,000 at least $40,000 must be in money market fund where invested in stock fund M = dollars invested in money market fund S = dollars S,M 0 M 40,000 0.10S + 0.05M 14,000 S + M = 200,000 subject to Minimize risk = 12S + 5M The QM for Windows output is shown below. (a) How much money should be invested in the money market fund and the stock fund? What is the total risk? (b) What is the total return? What rate of return is this? (c) Would the solution change if risk measure for each dollar in the stock fund were 14 instead of 12? (d) For each additional dollar that is available, how much does the risk change? (e) Would the solution change if the amount that must be invested in the money market fund were changed from $40,000 to $50,000? 38) Refer to the Bhavika Investments (Problem 7-37) situation once again. It has been decided that, rather than minimize risk, the objective should be to maximize return while placing restriction on the amount of risk. The average risk should be no more than 11 (with a total risk of 2,200,000 for the $200,000 invested). The linear program was reformulated, and the QM for Windows output is shown on the next page. (a) How much money should be invested in the money market fund and the stock fund? What is the total return? What rate of return is this? (b) What is the total risk? What is the average risk? (c) Would the solution change if return for each dollar in the stock fund were 0.09 instead of 0.10? (d) For each additional dollar that is available, what is the marginal rate of return? (e) How much would the total return change if the amount that must be invested in the money market fund were changed from $40,000 to $50,000? I ONLY NEED QUESTION 38 to be answered. 37 is just there for references