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Mair & Rosen, Inc. (B&R), is a brokerage firm that specializes in investment portfollos designed to meet the specific risk tolerances of its clients.

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Mair & Rosen, Inc. (B&R), is a brokerage firm that specializes in investment portfollos designed to meet the specific risk tolerances of its clients. A client who contacted S&R this past week has a maximum of $65,000 to invest. BAR's investment advisor decides to recommend a portfolio consisting of two investment funds: an Internet fund and Blue Chip fund. The Internet fund has a projected annual return of 11%, whereas the Blue Chip fund has a projected annual return of 8%. The investment advisor requires that at most $45,000 of the client's funds should be invested in the Internet fund, B&R services include a risk rating for each investment altemative. The Internet fund, which is the more risky of the two investment alternatives, has a risk rating of 6 per thousand dollars invested. The Blue Chip fund has a risk rating of 4 per thousand dollars invested. For example, if $10,000 is invested in each of the two investment funds, BAR's risk rating for the portfolio would be 6(10) 4(10) 100. Finally, BAR 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 mit his or her portfolio to a maximum risk rating of 310. (a) Formulate a linear programming model to find the best investment strategy for this client. (Assume N 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.) Max 0.117+ 0.088 s.t. Available investment funds B+1 65000 Maximum investment in the internet fund 1245000 Maximum risk for a moderate investor N, 80 (b) Build a spreadsheet model and solve the problem using Excel Solver, What is the recommended investment portfolie (in dallars) for the Internet fund blue chip fund What is the annual return (in dollars) for the portfolio? (b) Suppose that a second client with $55,000 to invest has been classifed as an aggressive investor BAR recommends that the maximum portu aggressive investor is 350. What is the recommended Investment portfolio (in dollars) for this aggressive internet fund. (b) Suppose that a second client with $65,000 to invest has been classified as an aggressive investor. B&R recommends that the maximum portfolio risk rating for an aggressive investor is 350. What is the recommended Investment portfolio (in dollars) for this aggressive investor? internet fund blue chip fund (d) Suppose that a third client with $55,000 to invest has been classified as a conservative investor. B&R recommends that the maximum portfolio risk rating for a conservative investor is 200. Develop the recommended investment portfolio (in dollars) for the conservative investor internet fund $ blue chip fund $

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