J. D. Williams, Inc. is an investment advisory firm that manages more than $120 million in funds
for its numerous clients. The company uses an asset allocation model that recommends the
portion of each client’s portfolio to be invested in a growth stock fund, an income fund, and a
money market fund. To maintain diversity in each client’s portfolio, the firm places limits on the
percentage of each portfolio that may be invested in each of the three funds. General guidelines
indicate that the amount invested in the growth fund must be between 20 and 40% of the total
portfolio value. Similar percentages for the other two funds stipulate that between 20 and 50%
of the total portfolio value must be in the income fund and that at least 30% of the total portfolio
value must be in the money market fund.
In addition, the company attempts to assess the risk tolerance of each client and adjust the
portfolio to meet the needs of the individual investor. For example, Williams just contracted with
a new client who has $800,000 to invest. Based on an evaluation of the client’s risk tolerance,
Williams assigned a maximum risk index of 0.05 for the client. The firm’s risk indicators show the
risk of the growth fund at 0.10, the income fund at 0.07, and the money market fund at 0.01. An
overall portfolio risk index is computed as a weighted average of the risk rating for the three
funds, where the weights are the fraction of the client’s portfolio invested in each of the funds.
Additionally, Williams is currently forecasting annual yields of 18% for the growth fund, 12.5%
for the income fund, and 7.5% for the money market fund. Based on the information provided,
how should the new client be advised to allocate the $800,000 among the growth, income, and
money market funds? Develop a linear programming model that will provide the maximum yield
for the portfolio. Use your model to develop a managerial report.
- Recommend how much of the $800,000 should be invested in each of the three funds.
What is the annual yield you anticipate for the investment recommendation?
- Assume that the client’s risk index could be increased to 0.055. How much would the yield
increase, and how would the investment recommendation change?
- Assume that the client expressed some concern about having too much money in the
growth fund. How would the original recommendation change if the amount invested in
the growth fund is not allowed to exceed the amount invested in the income fund?
- The asset allocation model you developed may be useful in modifying the portfolios for
all of the firm’s clients whenever the anticipated yields for the three funds are periodically
revised. What is your recommendation as to whether use of this model is possible?
work with goslings. Lorenz believed that A breakdown in the relationship with its mother led to a disruption in the development of a bird’s normal social behaviour, supporting his theory that the first relationship a bird experiences determines the bird’s future. Likewise, John Bowlby claimed that a disruption in the child’s attachment to its mother had grave consequences for his or her adult personality (Vicedo, 2009). It is my understanding that in Bowlby’s attachment theory, an anxious attachment style has a prolonged, more complicated effect upon grieving, a person with an anxious style of attachment may experience deeper levels of depression, contrary wise a secure attachment to the deceased, may indicate less depression and aid the transition through grieving and the recovery from it. This may be that in an anxious state of attachment the deceased may not have been emotionally available to the bereaved, and therefore the bereaved person may over-activate their grief response. There are several limitations to Bowlby’s attachment theory the first being that the model was based upon young children utilising momentary separations, which were stressful for the child, more understanding could come from an observation of how parents interact with the child and what they provide for each other during natural, non-stressful situations. How children interact with their parents in a non-stressful situation may provide more information on how the attachment model works than how the child acts when the mother leaves and then returns. Secondary to this the observations took place utilising only the primary caregiver, for example, the mother and other family attachments may not be characterised by similar reactions. Finally, the father or a sibling may have the same attachment with the child at the same time, relating directly to adults having more than one primary attachment, such as significant other and their children. This shows that attachment is not merely confined to infancy but experienced countless times throughout life including adolescence, early adulthood and beyond. There are several models of grieving that can be explored in relation to disenfranchised grief, firstly the five stages of grief Kubler-Ross (2005) states that the five stages of grief, have evolved since their introduction and have been very misunderstood over the past decades. She goes on the say that they were never meant to help tuck messy emotions into neat packages. We can apply some of the stages of grief to C in that she has experienced anger, mainly at herself for putting her children in a position where violence was occurring in her relationship and being in a place emotionally where she felt she needed drugs and alcohol to cope but mainly not being the parent that her children deserved. She has experienced an initial denial when the children were first placed with social services and again when they were put up for adoption and she has experienced depression. In relation to the baby that died the stages of grief can be seen although not in their entirety, some denial or disbelief may have been present when she received the diagnosis of Edwards syndrome, however, from her disclosures it seems quite matter of fact, the baby was ill and a deci>GET ANSWER