An Investment Firm With The Name Of J.d. Williams, Inc.

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Introduction An investment firm with the name of J.D.Williams, Inc. helps many of its clients invest over $120 million for the last 40 years. We have many personal investors helping many individuals with their investments. We create personalized plans for our clients depending on their needs. Our company has multiple methods to help its clients with investments. We use many different approaches when it comes to assessing and making an appropriate plan for the investment. One of the methods utilized by this company is an asset allocation model, this model offers the clients multiple strategies they can use such as investing in growth fund this plan does not have much payout for the investor and the risk is higher. The next is Income fund …show more content…

Our client will be provided with an personal investor who will assess all the needs of our client. Formulation A linear formula idea will be used and the decision variables will be labeled as follow: GF= Growth Fund investment $ IF= Income Fund investment $ MMF= Money Market Fund $ Objective Functioning To maximize the total return for the client the following will be computed: Max 0.18GF + 0.125 +0.075MMF Constraint Definition 1GF +1IF+1MMF $800,000 Total amount available 0.80GF-0.20IF-0.20MMF 0 Growth Fund investment at minimum 20% of the amount 0.60GF-0.40IF-0.40MMF 0 Growth Fund investment at maximum 40% of the amount -0.20GF +0.80IF-0.20MMF 0 Growth Fund investment at minimum20% of the amount -0.50GF+0.80IF-0.50MMF0 Growth Fund investment at maximum 50% of the amount -0.30GF-0.30IF+0.70MMF 0 Grownth Fund investment at minimum at 30% of the amount 0.05GF+0.02IF-0.04MMF0 Risk tolerance for an investor Risk Taking Assumptions When coming up with an investment plan one has to assume the risks as this helps better tackle and consider every possible risk present. We have already been informed that the risk taking index for our client is 0.05. Growth Fund Income Fund Money Market Fund Risk Indicator 0.10 0.07 0.01 Annual Yield 0.18 0.125 0.075 Appropriate Investment Amount According to the percentages the allocations were calculated and the recommendations are as listed: Growth

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