How much should be invested in each type of investment

Reference no: EM13275812

An investor has at most $10,000 to invest in government bonds, mutual funds, and money market funds. The average yields for the government bonds, mutual funds, and money market funds are 2%, 8%, and 5% respectively. the investor's policy requires that the total amount invested in mutual funds and money market funds not exceed the amount invested in government bonds. How much should be invested in each type of investment in order to maximize the return? What is the maximum return in the first year? Please show work.

Reference no: EM13275812

Questions Cloud

What is the projected increase in retained earnings : Bobbi's Bagel Emporium expects sales of $490,000 next year. The profit margin is 6.0 percent and the firm has a 30 percent dividend payout ratio. What is the projected increase in retained earnings?

Compute the yield curve for the next three years : Suppose that the interest rate on one-year bonds is 4 percent today, and is expected to be 5 percent one year from now and 6 percent two years from now. Using the Expectations Hypothesis, compute the yield curve for the next three years.

How to design a 4-bit serial equality comparator : Design a 4-bit serial equality comparator. That is, if we have a3a2a1a0 = b3b2b1b0, then eq = 1. Note that a3a2a1a0 is stored at register 1, while b3b2b1b0 is stored at register 2. You have to implement the same function using a serial equality co..

Determine the developed average power : A shot-putter accelerates a 7.28 kg shot from rest to 14.8 m/s. If this motion takes 1.31 s, what average power was developed

How much should be invested in each type of investment : How much should be invested in each type of investment in order to maximize the return? What is the maximum return in the first year? Please show work.

What values of kp and ki will makes to happen : Describe the type of response that would exist if the values of Kp and Ki placed the roots on the boundaries determined in part 1. Note consider each boundaries may exhibit a different performance

Explain what are the spectator ions in the solution : the second contains 0.1 mol Na2S , and the third contains 0.1 mol CaCl2 . What net ionic equations for the precipitation reaction or reactions that occur. What are the spectator ions in the solution

Determine the scalar component of the moment : Determine the scalar component of the moment at point 0 about line OB and the reaction at 0 - average normal and shear stresses on plane BB.

Prepare a simple balance sheet of assets : Assume that Banc One receives a primary deposit of $1 millions. The bank must keep reserves of 20 percent against its deposits. Prepare a simple balance sheet of assets and liabilities for Banc One immediately after the deposit is received.

User Account

All Pages