(b) Bulid a spreadsheet model and solve the problem using Solver. What is the recommended investment portfolio for this dient? Internet Fund =5 Blue Chip Fund =$ What is the annual return for the partfolio? $ (c) Suppose that a second client with $55,000 to invest has been classified as an aggressive investor, akR recommends that the maximum portfolio risk rating for an aggressive investor is 310 . What is the recommended investment portfolio for this aggressive investor? Internet Fund =5 Blue Chip Fund =$ Annual Return =$. (d) Suppose that a third cient with $55,000 to invest has been classfied as a conservative investor. Bs recommends that the maximum portfolio nik rating for a conservative investor is 150, Develop the recommended investment portfolio for the conservative investor. If an amount is zero, enter "0". Internet Fund =$ Biue Chip Fund =5. Annual return 5 Blair \& Rosen, Inc. (BSR) is a brokerage firm that specializes in investment portfolios designed to meet the specific risk tolerances of its elients. A client who contacted B\&R this past week has a maximum of $55,000 to invest. B8R's investanent advisor decides to recommend a portfolio consisting of two investment funds: an Internet fund and a Blue Chip fund. The Intemet fund has a projected annual return of 17%, and the Blve Chip fund has a projected annual return of 7%. The investment advisor requires that at most 530,000 of the client's funds should be invested in the Internet fund. BBR services include a risk rating for each investment alternative. The Internet fund, which is the more risky of the two investment alternatives, has a risk rating of 6 per thousand dollars invested. The Bive Chip fund has a risk rating of 4 per thousand dollars invested. For example, if $10,000 is invested in each of the two investrient funds, BBP's risk rating for the portfolio would be 6(10)+4{10)=100. Finally, B8R deviloped a questionnaire to measure each client's risk tolerance. Based on the resporses, each clent is dassified as a conservative, moderate, or aggressive investor. Suppose that the questionnaire resilis elassified the current client as a moderate investoc, BaR recommends that a client who is a moderate investor limit his or her portfollo to a maximum risk rating of 220 . (a) Formulate a linear programming model to find the best invectment strategy for this dient. Let l= Internet fund investment in thousands B = Blue Chip fund investment in thousands If required, round your answers to two decimat places. If an amount is zero, enter "0. If the constant is " 1 " it must be entered in the bax. (b) Build a spresdsheet model and soive the problem using solver, What is the recommended investment portfole for this cient? internet fund 1 (b) Bulid a spreadsheet model and solve the problem using Solver. What is the recommended investment portfolio for this dient? Internet Fund =5 Blue Chip Fund =$ What is the annual return for the partfolio? $ (c) Suppose that a second client with $55,000 to invest has been classified as an aggressive investor, akR recommends that the maximum portfolio risk rating for an aggressive investor is 310 . What is the recommended investment portfolio for this aggressive investor? Internet Fund =5 Blue Chip Fund =$ Annual Return =$. (d) Suppose that a third cient with $55,000 to invest has been classfied as a conservative investor. Bs recommends that the maximum portfolio nik rating for a conservative investor is 150, Develop the recommended investment portfolio for the conservative investor. If an amount is zero, enter "0". Internet Fund =$ Biue Chip Fund =5. Annual return 5 Blair \& Rosen, Inc. (BSR) is a brokerage firm that specializes in investment portfolios designed to meet the specific risk tolerances of its elients. A client who contacted B\&R this past week has a maximum of $55,000 to invest. B8R's investanent advisor decides to recommend a portfolio consisting of two investment funds: an Internet fund and a Blue Chip fund. The Intemet fund has a projected annual return of 17%, and the Blve Chip fund has a projected annual return of 7%. The investment advisor requires that at most 530,000 of the client's funds should be invested in the Internet fund. BBR services include a risk rating for each investment alternative. The Internet fund, which is the more risky of the two investment alternatives, has a risk rating of 6 per thousand dollars invested. The Bive Chip fund has a risk rating of 4 per thousand dollars invested. For example, if $10,000 is invested in each of the two investrient funds, BBP's risk rating for the portfolio would be 6(10)+4{10)=100. Finally, B8R deviloped a questionnaire to measure each client's risk tolerance. Based on the resporses, each clent is dassified as a conservative, moderate, or aggressive investor. Suppose that the questionnaire resilis elassified the current client as a moderate investoc, BaR recommends that a client who is a moderate investor limit his or her portfollo to a maximum risk rating of 220 . (a) Formulate a linear programming model to find the best invectment strategy for this dient. Let l= Internet fund investment in thousands B = Blue Chip fund investment in thousands If required, round your answers to two decimat places. If an amount is zero, enter "0. If the constant is " 1 " it must be entered in the bax. (b) Build a spresdsheet model and soive the problem using solver, What is the recommended investment portfole for this cient? internet fund 1
