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I have part of this question already answered. I need help adding constraints 7 and 8 ONLY at the bottom.

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CONSTRAINTS I NEED HELP WITH:

7) Must invest at least 4% of total amount invested in each fund.

8) Investments in the 8 funds should provide a weighted average of at least 5.5 on this green fund scale. Again you do not know how much of the $25K will be invested. Each fund has a rating on how green the companies they invest are

Fund 1 5 Fund 2 4 Fund 3- 1 Fund 4 4 Fund 5 8 Fund 6 6 Fund 7 5 Fund 8 7

4) MUTUAL FUN MODELING!! - The table below depicts the attributes of 8 mutual funds. The funds BETA (riskiness related to the market), its investment category (Large-Cap, Small- Cap, and International), the company (Vanguard, MFS, UBS), the anticipated yearly return under Middle East unrest conditions (RETI) and the anticipated yearly return under peaceful Middle East political conditions (RET2). FUND2 FUND3 FUND4 FUND5 FUND6 FUNDS FUNDZ 1.8 2.2 1.2 1.7 3.1 2.4 Intl Intl Intl FUND1 Beta 1.4 Category Large Company VAN RET1 -1.3 RET2 15.1 Small VAN -3.6 Large MFS Small UBS 0.9 Large UBS MFS UBS VAN -4.2 6.3 -2.1 4.6 -2.1 7.1 11.7 21.2 12.3 20.3 24.7 12.2 10.6 You have been instructed to invest up to $25,000 of a client's money in these 8 funds. You do NOT have to invest all $25,000, though any non-invested amount will earn 0% return. Parameters/restrictions/guidelines your investment model should consider: 1) Minimizing Weighted Beta (amount invested in fund X times fund X beta) is your objective. 2) Under market conditions RET1, invest such that your model shows no loss (return is at least 0). 3) Under market conditions RET2, invest such that your model shows at least a 15% return on the $25,000, though again, it does not need to invest all $25,000 in funds. So using RET2 anticipated return figures, your investments should give you at least a monetary return of (.15*25000). 4) No more than 50% of the total invested funds (not the $25,000 unless your model suggests to invest it all) can be invested in a particular fund category. 5) No more than 40% of the total invested funds (not the $25,000 unless your model suggests to invest it all) can be invested in a particular company. 6) To simplify investments, the investment allocation must be in whole numbers. Create and solve a mathematical programming model (LP) that addresses this investment situation. F5 F6 FZ F8 2500 10000 0 0 0 1.7 1.8 0.9 60250 F1 F2 F3 F4 0 10000 2500 1.4 2.2 1.2 Large Small Large Intl VAN VAN MFS MFS -1.3 3.6 4.2 15.1 21.2 12.3 Allocations Beta Category Company RET1 RET2 Constraints Intl UBS 3.1 2.4 Small Intl UBS VAN 6.3 -2.1 20.3 24.7 Large UBS 4.6 12.2 -2.1 7.1 11.7 10.6 RET1 0.046 0 -0.013 0.151 0.036 0.212 0.042 0.123 0.071 0.117 0.063 0.203 -0.021 0.247 0.122 -0.021 0.106 1 RET2 Fund 3750 1 1 1 1 1 1 1 1272.5 >= 4750 >= 25000 = 4750 >= 25000

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