# Math Help - HELP!please Linear Programming

Hey, I'm new to this forum, I'm having some trouble with this problem. I'm not very good at math and I dont really get this problem. Thanks for any help anyone can offer.

Blair & Rosen, Inc. (B&R), is a brokerage firm that specializes in investment portfolios de-signed to meet the specific risk tolerances of its clients. A client who contacted B&Rthispast week has a maximum of $50,000 to invest. B&R’s investment advisor has decided torecommend a portfolio consisting of two investment funds: an Internet fund and a BlueChip fund. The Internet fund has a projected annual return of 12%, while the Blue Chipfund has a projected annual return of 9%. The investment advisor requires that at most$35,000 of the client’s funds should be invested in the Internet fund. B&Rservices includea risk rating for each investment alternative. The Internet fund, which is the more risky ofthe two investment alternatives, has a risk rating of 6 per thousand dollars invested. TheBlue Chip fund has a risk rating of 4 per thousand dollars invested. For example, if $10,000is invested in each of the two investment funds, B&R’s risk rating for the portfolio wouldbe 6(10)4(10)100. Finally, B&Rhas developed a questionnaire to measure eachclient’s risk tolerance. Based on the responses, each client is classified as a conservative,moderate, or aggressive investor. Suppose that the questionnaire results have classified thecurrent client as a moderate investor. B&Rrecommends that a client who is a moderate in-vestor limit his or her portfolio to a maximum risk rating of 240. a. What is the recommended investment portfolio for this client? What is the annual re-turn for the portfolio? b. Suppose that a second client with$50,000 to invest has been classified as an aggres-sive investor. B&Rrecommends that the maximum portfolio risk rating for an aggres-sive investor is 320. What is the recommended investment portfolio for this aggressiveinvestor? Discuss what happens to the portfolio under the aggressive investor strategy.

c. Suppose that a third client with $50,000 to invest has been classified as a conservativeinvestor. B&Rrecommends that the maximum portfolio risk rating for a conservative in-vestor is 160. Develop the recommended investment portfolio for the conservative investor.Discuss the interpretation of the slack variable for the total investment fund constraint 2. Originally Posted by livingtwo Hey, I'm new to this forum, I'm having some trouble with this problem. I'm not very good at math and I dont really get this problem. Thanks for any help anyone can offer. Blair & Rosen, Inc. (B&R), is a brokerage firm that specializes in investment portfolios de-signed to meet the specific risk tolerances of its clients. A client who contacted B&Rthispast week has a maximum of$50,000 to invest. B&R’s investment advisor has decided torecommend a portfolio consisting of two investment funds: an Internet fund and a BlueChip fund. The Internet fund has a projected annual return of 12%, while the Blue Chipfund has a projected annual return of 9%. The investment advisor requires that at most$35,000 of the client’s funds should be invested in the Internet fund. B&Rservices includea risk rating for each investment alternative. The Internet fund, which is the more risky ofthe two investment alternatives, has a risk rating of 6 per thousand dollars invested. TheBlue Chip fund has a risk rating of 4 per thousand dollars invested. For example, if$10,000is invested in each of the two investment funds, B&R’s risk rating for the portfolio wouldbe 6(10)4(10)100. Finally, B&Rhas developed a questionnaire to measure eachclient’s risk tolerance. Based on the responses, each client is classified as a conservative,moderate, or aggressive investor. Suppose that the questionnaire results have classified thecurrent client as a moderate investor. B&Rrecommends that a client who is a moderate in-vestor limit his or her portfolio to a maximum risk rating of 240.

a. What is the recommended investment portfolio for this client? What is the annual re-turn for the portfolio?
Let I be the amount invested in the Internet fund and B that invested in the
Blue chip fund in dollars.

Now go through this translating each statement into a constraint or
an objective to be maximised or minimised.

To get you started, as there is at most \$50000 to be invested you have:

I >= 0
B >= 0
I + B <= 50000

now carry on from there.

RonL