Question: passage below require analyis and breakdown According to Quantitative Methods for Business, portfolio models are used to determine the percentage of the investment funds that

passage below require analyis and breakdown
According to Quantitative Methods for Business, portfolio models are used to determine the percentage of the investment funds that should be made in each asset class. The goal is to create a portfolio that provides the best balance between risk and return (p.552). There are two types of portfolio models. The first model is designed for conservative investors who are strongly averse to risk and is known as the conservative portfolio. The second model is designed for investors with a variety of risk tolerances and is known as a portfolio of mutual funds. A third model is also discussed, moderate risk portfolio, which is a portfolio for clients who are willing to accept a moderate amount of risk in order to attempt to achieve better returns.
I for one am very hesitant when it comes to investing my money. I do not want to invest it in something that is going to lose my money or not give me very high returns. I most definitely fall under the conservative investors and would most likely use the conservative portfolio model. If I wanted to make a little bit more on my returns then I would consider using the moderate risk portfolio model. To develop a portfolio that provides the best return possible with a minimum risk, we need to maximize the minimum return for the portfolio. With everything going on right now with the Corona Virus, many people have suffered great losses on their investments. In this particular situation, this was unavoidable, but it is these situations that make me very hesitant to take any risks. By using the linear programming model that is designed for conservative investors, I will be able to invest my money that will give me the greatest reward without all the risks involved.

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