Reformulate the problem so that the objective is to maximize the expected return while keeping total risk less than or equal to 1,500,000 and the three remaining portfolio goals, and use Solver to find the solution.

Please explain where you get your numbers from. Please help!

JONES INVESTMENT SERVICE Concepts: Minimization Charles Jones is a financial advisor who specializes in making recommendations to investors who have recently come into unexpected sums of money from inheri- tances, lottery winnings, and the like. He discusses investment goals with his clients, taking into account each client's attitude toward risk and liquidity. After an initial consultation with a client, Charles selects a group of stocks, bonds, mutual funds, savings plans, and other investments that he feels may be ap- propriate for consideration in the portfolio. He then secures information on each investment and determines his own rating. With this information he develops a chart giving the risk factors (numbers between 0 and 100, based on his evaluation), expected returns based on current and projected company operations, and liquid- ity information. At the second meeting Charles defines the client's goals more specifically. The responses are entered into a linear programming model, and a recommendation is made to the client based on the results of the model. Frank Baklarz has just inherited $100,000. Based on their initial meeting, Charles has found Frank to be quite risk-averse. Charles, therefore, suggests the following potential investments that can offer good returns with small risk. Potential Expected Jones's Liquidity Risk Investment Return Rating Analysis Factor Savings account 4.0% A Immediate 0 Certificate of deposit 5.2% A 0 Atlantic Lighting 7.1% B+ Immediate 25 Arkansas REIT 10.0% B Immediate 30 Bedrock Insurance annuity 8.2% 1-year 20 Nocal Mining bond 6.5% B+ 1-year 15 Minicomp Systems 20.0% A Immediate 65 Antony Hotels 12.5% Immediate 40 Based on their second meeting, Charles has been able to help Frank develop the following portfolio goals. 1. An expected annual return of at least 7.5% 2. At least 50% of the inheritance in A-rated investments 3. At least 40% of the inheritance in immediately liquid investments 4. No more than $30,000 in savings accounts and certificates of deposit Given that Frank is risk-averse, Charles would like to make a final recommenda- tion that will minimize total risk while meeting these goals. 5-year JONES INVESTMENT SERVICE Concepts: Minimization Charles Jones is a financial advisor who specializes in making recommendations to investors who have recently come into unexpected sums of money from inheri- tances, lottery winnings, and the like. He discusses investment goals with his clients, taking into account each client's attitude toward risk and liquidity. After an initial consultation with a client, Charles selects a group of stocks, bonds, mutual funds, savings plans, and other investments that he feels may be ap- propriate for consideration in the portfolio. He then secures information on each investment and determines his own rating. With this information he develops a chart giving the risk factors (numbers between 0 and 100, based on his evaluation), expected returns based on current and projected company operations, and liquid- ity information. At the second meeting Charles defines the client's goals more specifically. The responses are entered into a linear programming model, and a recommendation is made to the client based on the results of the model. Frank Baklarz has just inherited $100,000. Based on their initial meeting, Charles has found Frank to be quite risk-averse. Charles, therefore, suggests the following potential investments that can offer good returns with small risk. Potential Expected Jones's Liquidity Risk Investment Return Rating Analysis Factor Savings account 4.0% A Immediate 0 Certificate of deposit 5.2% A 0 Atlantic Lighting 7.1% B+ Immediate 25 Arkansas REIT 10.0% B Immediate 30 Bedrock Insurance annuity 8.2% 1-year 20 Nocal Mining bond 6.5% B+ 1-year 15 Minicomp Systems 20.0% A Immediate 65 Antony Hotels 12.5% Immediate 40 Based on their second meeting, Charles has been able to help Frank develop the following portfolio goals. 1. An expected annual return of at least 7.5% 2. At least 50% of the inheritance in A-rated investments 3. At least 40% of the inheritance in immediately liquid investments 4. No more than $30,000 in savings accounts and certificates of deposit Given that Frank is risk-averse, Charles would like to make a final recommenda- tion that will minimize total risk while meeting these goals. 5-year