Formulate the following problem (do not solve) by a. Define the decision variables. b. Specify the objective function. c. Specify the constraints and simplify them so that the left hand side of each constraint only contains terms involving the decision variables. d. Solve problem using Solver Mr. F. T. Wells is a financial analyst for the State of Utah. Mr. Wells has been asked by the finance committee to prepare investment recommendations for the $2,000,000 in the State Employee Retirement Fund. The committee has suggested that investments be diversified by allocating the fund among the following: certificates of deposit, treasury notes, blue-chip stock, speculative stock, corporate bonds, and real estate. Mr. Wells has estimated the annual yield for each class of investment and for each investment class, has developed a risk factor that indicates the probability that the actual yield of the investments in that class will be less than the expected yield. Finally, he has developed a forecast of the average number of years that the expected yield for the respective investment class will be realized. The information is given in the following table: Expected Annual Average Term Yield Risk of Investment Class of Investment Factor (Years) Certificate of deposit 8.5 .02 Treasury notes 9.0 Blue-chip common stock .38 Speculative stock Corporate bonds 6.7 .07 Real estate 13.0 m .01 7 19 8.5 14.3 .45 0 9 > .35 The state finance committee has indicated it would like to have a weighted average investment period of at least five years where the weights are the fraction of the portfolio invested in each investment class. The committee also has indicated that the weighted average risk factor should be no greater than .20. Regulation prohibits more than 25% of the state's investments being placed in speculative stock. Mr. Wells wishes to maximize expected return from the $2,000,000