A person plans to invest Rp 100 million by buying three types of shares.

The available information shows that the three shares to be purchased have a return of 30%, 28% and 25% respectively, while the risk of loss faced by the ownership of these shares is 25%, 22% and 20%, respectively. If investors want the average return obtained is 28.4% while the desired average risk is 23.1%.

Question:

a. Determine how the system of linear equations and the matrix

b. Calculate the funds allocated for each type of stock so that the return and risk received are as expected. Use the INVERSE method

Answer rating: 100% (QA)

a We can set up a system of linear equations using the given information Let x y and z be the amount... View the full answer