•10.2) Please highlight where answers are on your document or paper! •Please typ
ID: 3283323 • Letter: #
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•10.2) Please highlight where answers are on your document or paper! •Please type or write legible! •Question may be broken up into different pictures!blair& Rosen, Ince (0AR) is a brokerage fom that secialives in investimentosigned to meet the specific riss tolerances of its clients. A client who contacted BaR this past week has a mayir um of 150,000 to ? vest BSA's nvestment advisor desses to rew enend a prtfolio consist of two investment unts: an i teme und and Blue Chip fund. The Inter etfund has apv ed amal ielern of 12% whereas no m . cno und has a woected annual return of). Toe mnmn.is r i reg that at most ?5,000 of the cite n n.nds shedd be mested mthe Inter, et n-dBAR senses include a nik rati gfor each invest ent ate native. The Inte met fund- s the more riaky of the two investment aterytives, has a k aigper thuadllars invested, The Blue Chip fund has a risk rating of 4 per thousand dolars invested. For example, ir 610,000 is wweeted ? each of ne i svestment heen, aan ok iating kr the portfol o would be 6(10) . 4(10) _ ion mary, BAR drve oped 1 questionnaire to mesasure each cient's rak toerane Based on the respenses, ach enet is clasified as a conservative, moderate, or agpressive investor, Suppose that nuestionnaire results classied rating of 240 the current chent as a moderate es BAR wmmends that a cient who is a moderate investor limit his or her portfolio to a maximum risk a what is the recommended investment petreno h" thn item, what " ?. awwal rehm sor the portfoto'" required round your answers to the nearest dolla Internet fund Blue Chip fund Annual relun b Suppose that a second cient wth 15o.0o tn inivest has been csi led as an apsssve nveston Bak rexcomimends that the 20 What is the recommended nivestment potholie for this opressive investor? if required, round your answers to the nearest dolar ?nternet fund Blue Chip fund Annual retum
Explanation / Answer
(A) Investent in Internet fund be x and blue chip fund be y
max Return = 0.12 x + 0.09 y
x + y <= 50,000
6/1000 * x + 4/1000 * y <= 240
x >= 0
y >= 0
Answers are
x = 20000
y = 30000
R = 5100
(B) Investent in Internet fund be x and blue chip fund be y
max Return = 0.12 x + 0.9 y
x + y <= 50,000
6/1000 * x + 4/1000 * y <= 320
x >= 0
y >= 0
Answers are
x = 35000
y = 15000
R = 5550
(C)
Investent in Internet fund be x and blue chip fund be y
max Return = 0.12 x + 0.9 y
x + y <= 50,000
6/1000 * x + 4/1000 * y <= 160
x >= 0
y >= 0
Answers are
x = 0
y = 40000
R = 3600
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