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An investor wants to invest $ 5 0 , 0 0 0 in two mutual funds, A and B . The rates of retum, risks
An investor wants to invest $ in two mutual funds, A and B The rates of retum, risks and minimum investment requirements for each fund are: pts Fund Rate of return Risk Minimum investment A $ B $ Note that a low Risk rating means a less risky investment. The investor can invest to maximize the expected rate of return or minimize risk. All $ will be invested in these funds. a Define the objectives for this problem. b Formulate this problem with a Minimax objective and all appropriate constraints in the space below. c Find the optimal solution using Solver. Attach a copy of your final spreadsheet in the space below ensure your target values are clearly labeled on your spreadsheet. State your optimal solution
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