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* * * help fill ( a ) to ( d ) numbers, just dont give me other chart numbers would waste my money, thanks!
help fill a to d numbers, just dont give me other chart numbers would waste my money, thanks!
Blair & Rosen, Inc. B&R is a brokerage firm that specializes in investment portfolios designed to meet the specific risk tolerances of its clients. A client who contacted B&R this past week has a maximum of $ to invest. B&Rs investment advisor decides to recommend a portfolio consisting of two investment funds: an Internet fund and a Blue Chip fund. The Internet fund has a projected annual return of whereas the Blue Chip fund has a projected annual return of The investment advisor requires that at most $ of the client's funds should be invested in the Internet fund. B&R 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 per thousand dollars invested. The Blue Chip fund has a risk rating of per thousand dollars invested. For example, if $ is invested in each of the two investment funds, B&Rs risk rating for the portfolio would be Finally, B&R developed a questionnaire to measure each client's risk tolerance. Based on the responses, each client is classified as a conservative, moderate, or aggressive investor. Suppose that the questionnaire results classified the current client as a moderate investor. B&R recommends that a client who is a moderate investor limit his or her portfolio to a maximum risk rating of
a Formulate a linear programming model to find the best investment strategy for this client. Assume is the amount invested in the internet fund project and is the amount invested in the Blue Chip fund. Express the amounts invested in thousands of dollars.
st
Available investment funds
Maximum investment in the internet fund
Maximum risk for a moderate investor
b Build a spreadsheet model and solve the problem using Excel Solver. What is the recommended investment portfolio in dollars for this client?
internet fund
blue chip fund $
What is the annual return in dollars for the portfolio?
$ investment portfolio in dollars for this aggressive investor?
tableinternet fund,blue chip fund,$
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