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set up the solution in your Excel workbook as a separate worksheet. An investor wants to invest $100,000, considering asset allocation among six mutual fund
set up the solution in your Excel workbook as a separate worksheet. An investor wants to invest $100,000, considering asset allocation among six mutual fund investment options. The risk level of each considered fund is rated by experts on a scale of 1 to 5, where 1 indicates the most conservative investment, and 5 indicates the riskiest investment. The investment options, their respective fund categories, estimated risk levels, and average annual returns since inception are shown in the table below. Fund Symbol Category Risk Level Average Annual Return A Money Market Fund 1 3.25% B Money Market Fund 2 4.67% C Bond Fund 2 7.26% D Bond Fund 3 9.13% E Growth Fund 4 12.30% F Aggressive Growth Fund 5 16.64% a) Based on these data, the investor would like to maximize the long-term average annual return of the chosen investment portfolio, subject to the following restrictions: o The average risk level of the entire investment portfolio should not exceed 3. o At least 15% of the portfolio should be invested in money market funds. o At least 20% of the portfolio should be invested in bond funds. o At most 50% of the portfolio should be invested in funds with risk level above 2. o At most 20% of the portfolio should be invested in the aggressive growth fund
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