# A++ WORK

This assignment involves three nonlinear mathematical models. I need the three questions answered.

In doing so, I need to: 1. identify and apply the appropriate linear model, 2. explain how this model was selected, and 3. identify a best-case scenario from a generated selection of sensitivity profiles.

Theo Harris earns \$55,000 a year and has \$9,000 to invest in a portfolio. His investment alternatives and their expected returns are shown in the table below.

 Investment Description Expected Return A IRA (retirement) 3.5% B Employer’s retirement plan 4.5% C Deferred income (retirement) 8.0% D Unity mutual fund 7.0% E Liberty mutual fund 7.5% F Money market 5.5%

Theo’s investment goals are as follows and can be ranked according to the weights shown in parenthesis.

Question 1: Which investments should be included in Theo’s portfolio

Question 2: How much should he invest in each?

Goal 1: (25) Invest all funds available.

Goal 2: (20) Maximize the total annual return in dollars, with a target of \$1,000.

Goal 3: (15) Invest at least 3% of salary in employer’s retirement plan.

Goal 4: (15) Invest at least 10% of the total investment in the money market.

Goal 5: (10) Invest at most 25% of the total investment in retirement plans.

Goal 6: (10) Invest at least 50% of the total investment in non-retirement plans.

Goal 7: (5) Invest at most 50% of the total investment in mutual funds.

Question 3: Which investments should be included in Theo’s portfolio?

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