A Financial Planner Wants to Design a Portfolio of Investments

question 13

Essay

A financial planner wants to design a portfolio of investments for a client. The client has $400,000 to invest and the planner has identified four investment options for the money. The following requirements have been placed on the planner. No more than 30% of the money in any one investment, at least one half should be invested in long-term bonds which mature in six or more years, and no more than 40% of the total money should be invested in B or C since they are riskier investments. The planner has developed the following LP model based on the data in this table and the requirements of the client. The objective is to maximize the total return of the portfolio.
Formulate the LP for this problem.

---

Definitions:

Socio-cultural Practices

The collective habits, traditions, rituals, norms, and activities that are characteristic of a given community or society, shaped by its cultural and social contexts.

Unique Outcome

In narrative therapy, it refers to instances or events that deviate from the dominant problem-saturated story of a client's life, highlighting moments of resilience or success.

Problem-saturated Story

Narratives that clients bring into therapy focusing solely on issues and difficulties, often obscuring potentials and strengths.

Drama

A genre of narrative fiction (or semi-fiction) intended to be more serious than humorous in tone.