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Bhavika Investments, a group of financial advisors and retirement planners, has been requested to provide advice on how to invest $ 2 0 0 ,

Bhavika Investments, a group of financial advisors and retirement planners, has been requested to provide advice on how to invest $200,000 forone 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: Minimize risk =12S +5M subject to S + M =200,000 total investment is $200,0000.10S +0.05M 14,000 return must be at least $14,000M 40,000 at least 40,000 must bein money market fund S, M 0 where S = dollars invested in stock fund M = dollars invested in money market fund The QM for Windows output is shown below.(a) How much money should be invested in themoney market fund and the stock fund? What isthe total risk? (b) What is the total return? What rate of return ist his? (c) Would the solution change if the risk measurefor 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?

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