Mair 5 Rosen, Inc. (B8R), is a brokerage firm that specialres in investment portfolios designed to meet the specific risk tolerances of its clients. A elient who contacted Bsir trie past vetk nas a mavimum of $65,000 to invest. BaR's livestment advisor decides to recommend a pertfolo consisting of two investment funds: an Internet fund and a blue Chip fund. The unds should be invested in the Internet fund. BSR services include a risk rating for each investment alternative. The Internet fund, which is the more niky of the two investment alternaties, has a risk rating of 6 per thousand dollars invested. The Blive Chip fund has a risk rating of 4 per thousand dollars invested, For trample, if $10,000 is investred in eich two innesiment funds, B8R's risk rating for the portfolio would be 6(10)+4(10)=100. Finally, BSA developed a questionnaire to measure sach elient's risk talerance. Based on the respenses, each clent is classhed as a conservative, moderate, or agoressive investor, Suppose that the questionnaire rasults dassified the current elient as a moderate investor, nat incormmenes that a dient who is a meoerate invester limit his of her portfolo to a maximum risk rating of 310 . (a) Fermulote a linear programming model to find the best investment strategy for this dient. (Assume N is the amount invested in the internet fund aroject and 8 is the ancunt invesed in the Bue Chip find. Express the amounts invested in thousands of dollars.) Makimum investment in the internet fund Maximum risk for a moderate investor N,a0 (6) Euild a seresdsheet model and sulve the probiem using Eucel Solver. What is the recommended investment portiolio (in dohars) for this cilent? irternet fund blue dip fund s What is the anhuel retum (in doliers) for the portfotio? investor is 350 , What is the incommended investment portfolio (in dollars) for this aggressive investor? internet fund s Maximum investment in the internet fund Marimum risk for a moderate ifvestor Nrf0 (b) Build a spre adsheet model and solve the probiem using Excel Solver. What is the recommended investment portfolio fin doliars) for tha citert? intertiet-fund biue chip fund Whak is the annual return (in doliars) for the portfolio? ifvestor is 150, What is the recommended investment portfolio (in dollars) for this aggressive investor? internet fund blue chip fund is 220. Develop the recommended investment portfolio (in doliars) for the conservative investor. intermet fund blue chip fund
