Question: Repeat Problem 39 under the additional assumption that no more than $30,000 can be invested in money market funds. Problem 39 An investor has at
Problem 39
An investor has at most $100,000 to invest in government bonds, mutual funds, and money market funds. The average yields for government bonds, mutual funds, and money market funds are 8%, 13%, and 15%, respectively. The investor's policy requires that the total amount invested in mutual 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?
Step by Step Solution
3.52 Rating (182 Votes )
There are 3 Steps involved in it
Let x 1 the amount invested in government bonds x 2 the amount invested in mu... View full answer
Get step-by-step solutions from verified subject matter experts
Document Format (1 attachment)
828-B-F-F-M (3859).docx
120 KBs Word File
