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***Do not forget to follow the print-out rules for your print-outs. **Do not forget to staple your papers. 1. Finco invests in five different investment
***Do not forget to follow the print-out rules for your print-outs. **Do not forget to staple your papers. 1. Finco invests in five different investment alternatives: Utility Stock, Petrochemical Stock, Technology Stock, Healthcare Stock, and Airlines Stock. Each investment alternative has a risk rating on a scale of 0-10, with higher ratings indicating higher risk. Estimated return, risk, and maximum investment amount for each investment is as follows Estimated ReturnRisk (per S) Maximum Investment Investment Utility Stock Petrochemical Stock Technology Stock Healthcare Stock Airlines Stock 9.4% 10.6% 13.4% 19,000 $25,000 $22,000 $30,000 $24,000 9 10.9% Finco has $87,000 available for investment, and wants a portfolio with a risk of at most 6.3 In addition, Finco will follow the guidelines specified below: . Healthcare Stock should constitute at least 20% of the total funds invested. . At least 40% of the total funds should be placed in a combination of Utility Stock. Petrochemical Stock, and Technology Stock. a) Formulate a linear programming model to maximize the estimated return on the in- vestments for Finco. (Write the complete model for the problem. Make sure to give clear definitions of your decision variables) b) Solve the problem by using Excel Solver (Hand-in the one-page value and one-page formulas printouts for the problem). Show the optimal solution and optimal value in your printouts
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