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Question: blair amp rosen inc bampr is a brokerage firm that...

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Blair & Rosen, Inc. (B&R) is a brokerage firm that specializes in investment portfolios designed to meet the specific risk tolerances of its clients. A client who contacted B&R this past week has a maximum of $50,000 to invest. B&Rs investment advisor decides to recommend a portfolio consisting of two investment funds: an Internet fund and a Blue Chip fund. The Internet fund has a projected annual return of 12%, while the Blue Chip fund has a projected annual return of 9%. The investment advisor requires that at most $35,000 of the clients funds should be invested in the Internet fund. B&R services include a risk rating for each investment alternative. The Internet fund, which is the more risky of the two investment alternatives, has a risk rating of 6 per thousand dollars invested. The Blue Chip fund has a risk rating of 4 per thousand dollars invested. For example, if $10,000 is invested in each of the two investment funds, B&Rs risk rating for the portfolio would be 6(10) 4(10) 100. Finally, B&R developed a questionnaire to measure each clients risk tolerance. Based on the responses, each client is classified as a conservative, moderate, or aggressive investor Suppose that the questionnaire results classified the current client as a moderate investor. B&R recommends that a client who is a moderate investor limit his or her portfolio to a maximum risk rating of 240 (a) Formulate a linear programming model to find the best investment strategy for this client. Let 1 = Internet fund investment in thousands B Blue Chip fund investment in thousands If required, round your answers to two decimal places - Select your answer- s.t. Available investment funds B | -Select your answer- B | -Select your answer- B 1 -Select your answer- Maximum investment in the internet fund Maximum risk for a moderate investor I, B - Select your answer 0 (b) Build a spreadsheet model and solve the problem using Solver. What is the recommended investment portfolio for this client? Internet Fund$ Blue Chip Fund- What is the annual return for the portfolio? (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 320 What is the recommended investment portfolio for this aggressive investor? Internet Fund Blue Chip Fund $ Annual Return

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