Blair s. Rosen, Inc. (BBR) is a brokerage rm that specializes in investlnent portfolios designed to meet the specic risk tolerance of its clients. A...

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Blair s. Rosen, Inc. (BBR) is a brokerage firm that specializes in investlnent portfolios designed to meet the specific risk tolerance of its clients. A client who oonlacted BBB this past week hi5 a maximum of $55,000 to invest. BBR's invatmentadvisor decides to recommend a portfolio consisting ofth investmalt funds: an Internet fund and a Blue Chip lund. 111e Internet fund has a projected annual return ol11%, while the Blue Chip fund has a projected annual return ol NS. Theinvfitrnent advisor requirfi that at most $25,0DD of the dient's funds should be invested in the Internet fund. BBB senlices include a risk rating for each investmalt alternative. The Internet fund, which is the more risk‘.' ol the two invatmentalternatives, has a risk rating of 6 per thousand dollars invsted. The Blue Chip furld has a risk rating of4 pe' tl'lousand dollars invested. For example, 3 $10,000 is invfited in each ol the two invatment lunds, BBR's risk rating for the portfoliowould he 6(10) + 4(10) - 100. Finally, BER developed a qufitionnaire to measure eaLh client's risk tolerance. Based on the responsfi, EEd’I dient is dassilied as a conservative, moderate, or aggressive investor. Suppose that the oufitionnaireresults dassified the current client as a moderate invstor. BER recommalds that a client who is a moderate invfitor limit his or her portlolio to a maximum risk rating of 23B. (a) Formulate a linear programming model to find the bat invEtrnerlt strategy.' for this client.Let I - Internet fund investment in thousandsB - Bile Chip fund investment in thousandsIf required, round your answers to two decimal placfi. [-Solodyourlnmr- :i I + B.t. s I + B [- Matti-Inl- III-w - :1 Available invfitment lundsI + B [- fill-clim- III-w - :3 Maximum investlnent in the iiternet fundI + B [- fill-clim- III-w - :3 Maximum risk for a moderate investor 0 LB (ll) Build a spreadsheet model and solve the problem using Solver. What is the recommended ilvfitrnent portfolio [or this client? Internet Fund . $|:|Blue Chip Fund . $|:| Illl'hat is the annual return for the portfolio? *|:| (c) Suppose that a second client with $55,000 to invEt has been classified as an aggrfisive investor. BER recommends that the maximum portfolio risk rating for an aggressive investor is 350. Illl'hat is the recommended inivestmalt portfoliofor this aggressive investor? Internet Fund . $|:|Blue Chip Fund . $|:| (ll) Suppose that a third client with $55,0DD to invest hi5 teen dassilied as a conservative invEtor. BER recommends that the maximum portfolio risk rating for a conservative investor is 170. Devdop the recommended investlnent portfoliofor the conservative investor. Internet Fund . $|:|Blue Chip Fund . $|:|