D) suppose the third client with 50000 to invest has been classified as a conservative investor. B&R recommends that the maximum portfolio risk rating for a conservative investor is 160.develope the recommended investment portfolio for the conservative investor.
Internet fund:
Blue chip fund:
Annual return:
elook air&Rosen, Inc. (888) s a brokerage firm that specializes in investment portolles designed to meet the specific risk tolerances of its clients. A client who contacted B&R this past week has a maximum of $50,000 to invest 5's Investment advisor decides to recommend a portflie consisting of two investment funds: an Internet fund and a Blue Chip fund. The Internet fund has a projected annual return of 12%, while tt, op hnd-as a pregected smual retum er 9%. The metnet repres that at most S35,000-me deti "rds should be mested in the intemet fund asa serve esnelude i nsk rating fo each invest et alter aeve. The Internet fund, which is the more y of the two investment alternatives, has risk ating of 6 per thousand dollars invested. The Blue ip fund has a risk rating of 4 per tho dslars u vested. For example,$10,000 is invested each of the two investment nds, BBRY nsk rating for the portfolio would be 6(10) + 4(10)-100, mally, B&R developed questionnaire to masue each dient's risk tolerance, Based on the responses, each cient is classified as a conservative, moderate, or aggressive investor, Suppose that the questionnaire results classihed the current chert as moderne nvester. BAR recommends that a dient who a moderate nvestor int his or her portfolio to a maximum rating of 240, (a) Formulate a linear programming model to find the best investment strategy for this clent Let I-Internet fund investment in thousands 8 Blue Chip fund investment in thousands Ifmeed, round your answers to deonal places. If-an amount is rero, enter "O". the constant is "1. it must be entered in the box .12 91 + 0.0. . s.t 50.000 3 Available investment funds 35,000 3 Maximum investment in the internet furd 240 Maximum risk for a moderate Investo (b) Buid s soresdheet mode andsve the problem uing Solver Wt is the recommended investm portfolo for this Ch Internet Fund " ue Chip Pund30000 what nthe annual retum for the portfolio 20000 5100 elook air&Rosen, Inc. (888) s a brokerage firm that specializes in investment portolles designed to meet the specific risk tolerances of its clients. A client who contacted B&R this past week has a maximum of $50,000 to invest 5's Investment advisor decides to recommend a portflie consisting of two investment funds: an Internet fund and a Blue Chip fund. The Internet fund has a projected annual return of 12%, while tt, op hnd-as a pregected smual retum er 9%. The metnet repres that at most S35,000-me deti "rds should be mested in the intemet fund asa serve esnelude i nsk rating fo each invest et alter aeve. The Internet fund, which is the more y of the two investment alternatives, has risk ating of 6 per thousand dollars invested. The Blue ip fund has a risk rating of 4 per tho dslars u vested. For example,$10,000 is invested each of the two investment nds, BBRY nsk rating for the portfolio would be 6(10) + 4(10)-100, mally, B&R developed questionnaire to masue each dient's risk tolerance, Based on the responses, each cient is classified as a conservative, moderate, or aggressive investor, Suppose that the questionnaire results classihed the current chert as moderne nvester. BAR recommends that a dient who a moderate nvestor int his or her portfolio to a maximum rating of 240, (a) Formulate a linear programming model to find the best investment strategy for this clent Let I-Internet fund investment in thousands 8 Blue Chip fund investment in thousands Ifmeed, round your answers to deonal places. If-an amount is rero, enter "O". the constant is "1. it must be entered in the box .12 91 + 0.0. . s.t 50.000 3 Available investment funds 35,000 3 Maximum investment in the internet furd 240 Maximum risk for a moderate Investo (b) Buid s soresdheet mode andsve the problem uing Solver Wt is the recommended investm portfolo for this Ch Internet Fund " ue Chip Pund30000 what nthe annual retum for the portfolio 20000 5100
