3. Blair & Rosen, Inc. (B&R) is a brokerage firm thatspecializes in investment portfo- lios designed to meet thespecific risk tolerances of its clients. A client who contactedB&R this past week has a maximum of $50,000 to invest.B&R’s investment advisor decides to recommend a portfolioconsisting of two investment funds: an Internet fund and a BlueChip fund. The Internet fund has a projected annual return of 12%,and the Blue Chip fund has a projected annual return of 9%. Theinvestment advisor requires that at most $35,000 of the client’sfunds should be invested in the Internet fund. B&R servicesinclude a risk rating for
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