Mr. Tamm has $9000 to invest in three types of stocks: low-risk, medium-risk, and high-risk. He invests

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Mr. Tamm 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 more than the amount invested in medium-risk stocks. At least $5000 will be invested in low- and medium-risk stocks. No more than $7000 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. Tamm invest in each type of stock to maximize his total expected yield?

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Finite Mathematics And Its Applications

ISBN: 9780137616619

13th Edition

Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel , Jill Simmons

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