(For all the questions in this assignment, please provide both mathematic model and Excel Solver model in your submission).

Q1. An investor is considering allocating $10,000 among five investment alternatives. The five alternatives and their respective fund categories, risk levels, and average annual returns are shown below:

Name of Fund, Category of Fund, Risk Level, Average Annual Return

a) Adams, Money Market Fund, 1, 4.5%

b) Barney, Money Market Fund, 2, 5.62%

c) Chilton, Bond Fund, 3, 6.80%

d) Dunster, Bond Fund, 3, 10.15%

e) Excelsior, Aggressive Growth Fund, 5, 15.60%

The risk level of each investment is rated on a scale of 1 to 5, where 1 is very conservative and 5 is very risky. The investor would like to maximize the average annual return on his investment subject to the following restrictions:

1. The average risk level of the entire investment should not exceed 2.5, the average here is a weighted average in terms of the amount of money invested in each fund.

2. 30%-35% of the investment should be placed in money market funds. In other words, you should invest at least 30% and at most 35% of the budget into the money market funds

3. At most $3,000 should be invested in the aggressive growth fund.

Construct and solve a linear optimization model to determine the optimal allocation of the investor's money