Answer A,B,C,D (BASICALLY ALL)

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 14%, and the Blue Chip fund has a projected annual return of 7%. 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 5 per thousand dollars invested. The Blue Chip fund has a risk rating of 5 per thousand dollars invested. For example, if $10,000 is invested in each of the two investment funds, B&R's risk rating for the portfolio would be 5(10) + 5(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. B&R recommends that a client who is a moderate investor limit his or her portfolio to a maximum risk rating of 240.

(a) Formulate a linear programming model to find the best investment strategy for this client. Let I= Internet fund investment in thousands B=BlueChipfundinvestmentinthousands If reauired. round vour answers to two decimal blaces. If an amount is zero. enter " 0 ". If the constant is " 1 " it must be entered in the box. (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? $ for this aggressive investor? Internet Fund =$ Blue Chip Fund =$ Annual Return =$ the conservative investor. If an amount is zero, enter " 0 ". Internet Fund =$ Blue Chip Fund =$ Annual Return =$