Question: Please use excel solver (kindly post screenshots of the solver process in excel) to solve the question Bill Thomas earns $55,000 a year and has
Please use excel solver (kindly post screenshots of the solver process in excel) to solve the question
Bill Thomas earns $55,000 a year and has $9,000 to invest in a portfolio. His investment alternatives and their expected returns are shown in the table below.
| Investment | Description | Expected Return |
| A | IRA (retirement) | 3.5% |
| B | Employers retirement plan | 4.5% |
| C | Deferred income (retirement) | 8.0% |
| D | Unity mutual fund | 7.0% |
| E | Liberty mutual fund | 7.5% |
| F | Money market | 5.5% |
Bills investment goals are as follows and can be ranked according to the weights shown in parenthesis.
Question 1: Which investments should be included in Bills portfolio?
Question 2: How much should he invest in each?
Goal 1: (25) Invest all funds available.
Goal 2: (20) Maximize the total annual return in dollars, with a target of $1,000.
Goal 3: (15) Invest at least 3% of salary in employers retirement plan.
Goal 4: (15) Invest at least 10% of the total investment in the money market.
Goal 5: (10) Invest at most 25% of the total investment in retirement plans.
Goal 6: (10) Invest at least 50% of the total investment in non-retirement plans.
Goal 7: (5) Invest at most 50% of the total investment in mutual funds.
Question 3: Which investments should be included in Bills portfolio?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
