An investor wishes to invest some or all of his $12.5 million in a diversified portfolio through

Question:

An investor wishes to invest some or all of his $12.5 million in a diversified through a commercial lender. The types of investments, the expected interest per year, and the maximum allowed percentage investment he will consider are shown on the following table. He wants at least 35% of his investments to be in nonmortgage instruments and no more than 60% to be in high-yield (and high- risk) instruments (i.e., expected interest >8%). How should his investment be diversified to make the most interest income?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...