A financial planner wants to design a portfolio of investments for a client. The client has $300,000 to invest and the planner identified four investment options for the money. The following requirements have been placed on the planner. No more tha the money in any one investment, at least one third should be invested in long-term bonds which mature in seven or more no more than 25% of the total money should be invested in C or D since they are riskier investments. The planner has deve following LP model based on the data in this table and the requirements of the client. The objective is to maximize the total the portfolio. Investment A B Return 6.45% 7.10% 8.20% 9.00% Years to Maturity 9 8 Rating 1-Excellent 2-Very Good 4-Fair 3-Good Let MAX: Subject to: X1 = Dollars invested in A X2 = Dollars invested in B X3 = Dollars invested in C X4 = Dollars invested in D .0645 X1 +.071 X2 +.082 X3 +.09 X4 X1 + X2 + X3 + X4 300000 X15 75000 X2 s 75000 X3 S 75000 X4 575000 X1 + X2 + X4 X 100000 X3 + X4 S 75000 X1, X2, X3, X420 A D G 1 Bond N 3 A 4 B 5 6 D 7 Total Invested: 8 Total Available: B Amount Invested $0 $0 $0 $0 $0 $300,000 Maximum 25.00% $75,000 $75,000 $75,000 $75,000 Total: Return 6.45% 7.10% 8.20% 9.00% $0 E Years to Maturity 9 8 5 8 Total: Required: 7+ Years? (1 - yes, 0 - no) 1 1 0 1 $0 $100,000 Rating 1 - Excellent 2 - Very Good 4 - Fair 3 - Good Total: Allowed: H Good or worse? (1 - yes, 0 - no) 0 0 1 1 $0 $75,000 a) What formula should be entered in cell D7 in the accompanying Excel spreadsheet to compute the total return? (Click to select) b) Which cells are changing cells in the accompanying Excel spreadsheet? (Click to select) c) What formula should be entered in cell B7 in the accompanying Excel spreadsheet to compute total dollars invested? (Click to select)