How much should the national credit union invest in

Assignment Help Accounting Basics

Reference no: EM13615308

The National Credit Union has $250,000 available to invest in a12-month commitment. The money can be placed in Treasury notesyielding an 8% return or in municipal bonds at an average rate ofreturn of 7%. Credit union regulations require diversification tothe extent that at least 50% of the investment be placed inTreasury notes. Because of defaults in such municipalities asCleveland and New York, it is decided that no more than 40% of theinvestment be placed in bonds.

(a)How much should the National Credit Union invest in Treasury notesso as to maximize its return on investment?Round your answer to the nearest whole number; forexample, 123,456 .

(b)How much should the National Credit Union invest in municipal bondsso as to maximize its return on investment?Round your answer to the nearest whole number; forexample, 123,456 .

(c)What is the maximal return on investment?$Round your answer to the nearest whole number; forexample, 12,345 .

Reference no: EM13615308

Questions Cloud

A if fx is the probability density function pdf of a : a if fx is the probability density function pdf of a continuous random variable xwhat two conditions must be satised ?b

Srf beach state college sbsc has a business school with : surf beach state college sbsc has a business school with threeproducts undergraduate degrees graduate degrees and

You are working at a hotel in a resort location the : you are working at a hotel in a resort location. the manager says that the hotel must raise the rates in the winter

The number of atoms in each molecule is unknown : a new gaseous species has been made in the laboratory. the number of atoms in each molecule is unknown. measurements of

How much should the national credit union invest in : the national credit union has 250000 available to invest in a12-month commitment. the money can be placed in treasury

Stride-rite disclosed the effect of lifo liquidationsnet of : the following table contains data obtained from annual reportsof stride-rite a shoe manufacturer and retaileryears

Calculation a 90 confidence interval for the unknown : hoping to lure more shoppers downtown a city built a new public parking garage in the central business distri. the city

A jet airliner moving initially at 300 mih due east enters : a jet airliner moving initially at 300 mih due east enters a region where the wind is blowing at 105 mih in a direction

You want to rent an unfurnished one-bedroom apartment in : you want to rent an unfurnished one-bedroom apartment in boston next year. the mean monthly rent for a random sample of

User Account

All Pages