aste BI U = A 191 > $ % ) 88-98 Format as Table Cell Styles 0 x & fx B D E F G - L M N 0 Money Growth Income 14% 7% 4% LP Formulation (16 points) The IAF Company is an investment advisory firm. IAF needs to invest $100,000 from a client in three types of funds: a growth stock fund, an income fund, and a money market fund. The forecasted return and risk measure for each Investment are given in the table to the right. The client would like to minimize the risk of the portfolio while satisfying the following conditions: (1) Maintain at least 6% annual rate of return. (2) Put no more than 50% of the investment in any one fund. (3) All of $100,000 must be divided among the three funds. (4) The amount in the money market fund must be at least as large as the 25% of the amount in the growth fund. Using the following decision variables, type the following parts of the linear programming model. Let G = amount of $ invested in growth fund, I amount of $ invested in income fund, M = amount of $ invested in money market fund. Annual rate of retum Risk measures invested 0.12 0.06 0.01 Answers b) c) d) The answers should be in an algebraic form, e.g., 2G+31+ 4 M, not Excel formulas. (a) the objective function to minimize (b) constraint for condition (1) (c) constraint for condition (2) (d) constraint for condition (3) (e) constraint for condition (4) (nonnegativity constraint I e) 1 1 2 3 5 + Ready