Question: (b) Build a spreadsheet model and solve the problem using Solver. What is the recommended investment portfolio for this client? Internet Fund = $ 20000

 (b) Build a spreadsheet model and solve the problem using Solver.What is the recommended investment portfolio for this client? Internet Fund =

(b) Build a spreadsheet model and solve the problem using Solver. What is the recommended investment portfolio for this client? Internet Fund = $ 20000 0 Blue Chip Fund = $ 30000 8 What is the annual return for the portfolio? $ 6180 0 (c) Suppose that a second client with $50,000 to invest has been classified as an aggressive investor. B&R recommends that the maximum portfolio risk rating for an aggressive investor is 340. What is the recommended investment portfolio for this aggressive investor? Internet Fund = $ 35000 9 Blue Chip Fund = $ 15000 9 Annual Return = $ 6500 0 (d) Suppose that a third client with $50,000 to invest has been classied as a conservative investor. B&R recommends that the maximum portfolio risk rating for a conservative investor is 150. Develop the recommended investment portfolio for the conservative investor. Internet Fund = $ 25000 0 Blue Chip Fund = $ 5000 0 Annual Return = $ 4900 0 (a) Formulate a linear programming model to nd the best investment strategy for this client. Let I = Internet fund investment in thousands B = Blue Chip fund investment in thousands If required, round your answers to two decimal places. @ .12 01 + .09 03 s.t. 1 @I + 1 @B [:Q 50 @ Available investment funds 1 @I + 0 @B E9 35 9 Maximum investment in the internet fund 6 01 + 4 QB I: 9 24 9 Maximum risk fora moderate investor l:l@ (b) Build a spreadsheet model and solve the problem using Solver. What is the recommended investment portfolio for this client? Internet Fund = $ 20000 0 Blue Chip Fund = $ 30000 0 What is the annual return for the portfolio? $ 6180 0

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