Low risk rating means a less risky investment

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An investor wants to invest $50,000 in two mutual funds, A and B. The rates of return, risks and minimum investment requirements for each fund are: Fund A B Rate of return Risk 12% 0.5 9% 0.3 Minimum investment $20,000 $10,000 Note that a low Risk rating means a less risky investment. The investor can invest to maximize the expected rate of return or minimize risk. Any money beyond the minimum investment requirements can be invested in either fund. Formulate the MOLP for this investor.

Reference no: EM131126487

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