Mr. Jones has $11,000 to invest in three types of stocks, low-risk, medium-risk, and high-risk. He...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Mr. Jones has $11,000 to invest in three types of stocks, low-risk, medium-risk, and high-risk. He invests according to three principles. The amount invested in low-risk stocks will be at most $3,000 more than the amount invested in medium-risk stocks. At least $5,000 will be invested in low- and medium-risk stocks. No more than $8,000 will be invested in medium- and high-risk stocks. The expected yields are 6% for low-risk stocks, 7% for medium-risk stocks, and 8% for high-risk stocks. How much money should Mr. Jones invest in each type of stock to maximize his total expected yield? Mr. Jones should invest $ in low-risk stocks, $ in medium-risk stocks, and $ in high-risk stocks. Mr. Jones has $11,000 to invest in three types of stocks, low-risk, medium-risk, and high-risk. He invests according to three principles. The amount invested in low-risk stocks will be at most $3,000 more than the amount invested in medium-risk stocks. At least $5,000 will be invested in low- and medium-risk stocks. No more than $8,000 will be invested in medium- and high-risk stocks. The expected yields are 6% for low-risk stocks, 7% for medium-risk stocks, and 8% for high-risk stocks. How much money should Mr. Jones invest in each type of stock to maximize his total expected yield? Mr. Jones should invest $ in low-risk stocks, $ in medium-risk stocks, and $ in high-risk stocks.
Expert Answer:
Related Book For
Posted Date:
Students also viewed these finance questions
-
Mr. Jones has $9000 to invest in three types of stocks: low-risk, medium-risk, and high-risk. He invests according to three principles. The amount invested in low-risk stocks will be at most $1000...
-
Michael has decided to invest $40,000 in three types of funds. Fund A has projected an annual return of 8 percent, Fund B has projected an annual return of 10 percent, and Fund C has projected an...
-
How much money should a couple deposit at the end of each month in an investment plan that pays 7.5%, compounded monthly, so they will have $800,000 in 30 years? (a) State whether the problem relates...
-
If the Federal Government increases taxes:What will be the effect on money demand, money supply, and interest rates? Money demand decreases, money supply is unchanged, and interest rates decrease...
-
In a mass spectrometer, a doubly charged ion having a particular velocity is selected by using a magnetic field of 100 mT perpendicular to an electric field of 1.0 kV/m. This same magnetic field is...
-
Magnetic field values are often determined by using a device known as a search coil. This technique depends on the measurement of the total charge passing through a coil in a time interval during...
-
With matched pairs, the test for the difference between population means is the same as the test for a single population _________________ . In Exercises 3 and 4, fill in each blank with the...
-
Ranns Supply uses a perpetual inventory system. On January 1, its inventory account had a beginning balance of $7,740,000. Ranns engaged in the following transactions during the year. 1. Purchased...
-
Assignment- 2) On January 2, 2013 Piron Corporation issued 100,000 new shares of its $5 par value common stock valued at $19 a share for all of Seana Corporation's outstanding common shares. Piron...
-
In cell C11, construct a formula to calculate the annual projected street maintenance costs for the year 2025 after the projected increase of 5% is applied. Use absolute cell references as necessary....
-
5. As defined in class, let F(10, 5, -4,4) be the floating point number system consisting of all numbers of the form (0.d1d2d3d4ds) 10 10 where -4
-
Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory system and the gross method. Hint: It will help to identify each receivable...
-
A student parks their 1979 Cadillac Seville (mass = 2000-kilograms) atop a large hill. Unfortunately, they forget to set the brakes and the car begins to roll down the hill. It reaches a final...
-
Using the following Potential Energy Diagram, determine the position at which the particle has the highest speed. (2 points correct answer, 3 points explanation) Energy (J) 5 4 3 2 0+ on 0 2 FIGURE...
-
The metaverse, which is poising itself to be the Internet 3.0, is a virtual reality "super- platform" that can house social media, online video games, and other apps within the same cyberspace. As...
-
Compute the present values of the following bond using three (3) different discount rates. 4 marks $1,000 Face Value Coupon rate 12% Coupons are paid once in a year. Compute the PV of the bond using:...
-
Discuss what entrepreneurship and Innovation are and their importance Discuss the main characteristics of entrepreneurs and how they add value Analyse and critique what entrepreneurial firms have...
-
Consider the sections of two circuits illustrated above. Select True or False for all statements.After connecting a and b to a battery, the voltage across R1 always equals the voltage across R2.Rcd...
-
a. Construct a personal income statement for the Humperdinck family using the following information: salaries, $42,000; mortgage payment, $7,980; food, $2,400; interest income, $150; transportation,...
-
What is the relationship among fixed costs, contribution margin , and the break-even point?
-
Do a SWOT analysis on SWAN Rehabilitation.
-
A stirrer-container assembly contains a certain amount of fluid. The stirrer performs \(3 \mathrm{hp}\) work on the system. The heat developed by stirring is \(4000 \mathrm{~kJ} / \mathrm{h}\) and is...
-
Derive the mathematical expression of the first law of thermodynamics.
-
A system consisting of a gas confined in a cylinder undergoes a series of processes shown in Fig. 2.11. During the process A-1-B, \(70 \mathrm{~kJ}\) of heat is added while it does 45 \(\mathrm{kJ}\)...
Study smarter with the SolutionInn App