A Financial Planner Wants to Design a Portfolio of Investments

question 30

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.
What formulas are required for the following cells in the Excel spreadsheet implementation of the formulation?
B7
D7
F7
H7

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Definitions:

Radially Symmetrical

An organism is described as radially symmetrical when its body structure can be sliced into symmetrical halves through any number of planes along its center.

Water Vascular System

Unique hydraulic system of echinoderms; functions in locomotion and feeding.

Echinoderms

A phylum of marine animals including starfish, sea urchins, and sea cucumbers, characterized by radial symmetry and a water vascular system.

Digestive System

A collection of organs that breaks down food into nutrients, which the body uses for energy, growth, and cell repair.