Question 5 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 $50,000 to invest. B&R's 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 12%, and the Blue Chip fund has a projected annual return of 9%. The investment advisor requires that at most $35,000 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 6 per $1,000 invested. The Blue Chip fund has a risk rating of 4 per $1,000 invested. 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 240. What is the value of the objective function based on the optimal solution that maximizes this linear program? Consider the solutions: (0, 40), (20, 30), (35, 7.5), (0, 50), (35, 10). Click to open: Click to open: 5.1 - ZOOM + | | B & R, Inc. Parameters B & R, Inc. Parameters Budget (5000) Max Risk Rating $50.00 240 Internet Fund Blue Chip Fund Annual Return % 12% 9% Risk Rating per (5000) 6 4 Max Investment (5000) 35 Budget ($000) Max Risk Rating $50.00 240 Internet Fund Annual Return % 12% Blue Chip Fund 9% Risk Rating per ($000) 6 Max Investment (5000) 35 Model Internet Fund Amount to Invest (5000) $1.00 Blue Chip Fund $1.00 Total Invested ($000) Total Risk Rating $2.00 10 Total Return (5000) $0.21 Mathematics Mathematica Let = amount inves Let B amount Inves Max 0.12/+ 0.098 s.t. +B 50 6/+4B S 240 S35