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Question Help! a Blair 6. Rosen, Inc. (B&R) is a brokerage firm that specializes in Investment portfolios designed to meet the specific risk tolerances of
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a Blair 6. 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 BAR 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. Bar services include a risk rating for each investment alternative. The Internet rund, 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, Bor's risk rating for the portfolio would be 6(10) 4(10) - 100. 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. Bar recommends that a dient who is a moderate Investor limit his or her portfolio to a maximum risk rating of 240. (5) Formulate a linear programming model to find the best investment strategy for this dient. Lat I - Internet fund Investment in thousands B - Blue Chip fund investment in thousands If required, round your answers to two decimal places. If the constant is "1* it must be entered in the box. If your answer is zero enter *** 50 + Max Select your answer Available investment funds + Select your answer Maximum Investment in the Internet fund 7 - Select your answer Maximum nisk for a moderate Investor 28 Select your answer (b) Build a spreadsheet model and solve the problem using Solver. What is the recommended investment portfolio for this client? Internet Fund Blue Chip Fund - What is the annual return for the portfolio (C) Suppose that a second client with $50,000 to invest has been classined as an aggressive investor. Bar recommends that the maximum portfolio risk rating for an aggressive investor is 320. What is the recommended Investment portfolio for this aggressive Investor Internet Fund Blue Chip Fund - Annual Return (a) Suppose that a third client with $50,000 to invest has been classified as a conservative investor. B&R recommends that the maximum portfolio risk rating for a conservative investor is 160. Develop the recormended investment portfolio for the conservative Investor. If your answer is zero enter "o. Internet Funds Blue Chip Funds Annual Returns a Blair 6. 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 BAR 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. Bar services include a risk rating for each investment alternative. The Internet rund, 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, Bor's risk rating for the portfolio would be 6(10) 4(10) - 100. 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. Bar recommends that a dient who is a moderate Investor limit his or her portfolio to a maximum risk rating of 240. (5) Formulate a linear programming model to find the best investment strategy for this dient. Lat I - Internet fund Investment in thousands B - Blue Chip fund investment in thousands If required, round your answers to two decimal places. If the constant is "1* it must be entered in the box. If your answer is zero enter *** 50 + Max Select your answer Available investment funds + Select your answer Maximum Investment in the Internet fund 7 - Select your answer Maximum nisk for a moderate Investor 28 Select your answer (b) Build a spreadsheet model and solve the problem using Solver. What is the recommended investment portfolio for this client? Internet Fund Blue Chip Fund - What is the annual return for the portfolio (C) Suppose that a second client with $50,000 to invest has been classined as an aggressive investor. Bar recommends that the maximum portfolio risk rating for an aggressive investor is 320. What is the recommended Investment portfolio for this aggressive Investor Internet Fund Blue Chip Fund - Annual Return (a) Suppose that a third client with $50,000 to invest has been classified as a conservative investor. B&R recommends that the maximum portfolio risk rating for a conservative investor is 160. Develop the recormended investment portfolio for the conservative Investor. If your answer is zero enter "o. Internet Funds Blue Chip Funds Annual Returns Step by Step Solution
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