Question: An investor is considering allocating exactly $10,000 among five investment alternatives. The five alternatives and their respective fund categories, risk levels, and average annual returns

An investor is considering allocating exactly $10,000 among five investment alternatives. The five alternatives and their respective fund categories, risk levels, and average annual returns are shown below: The risk level of each investment is rated on a scale of 1 to 5, where 1 is very conservative and 5 is very risky. The risk level is assessed based on the amount (in $s) invest. For instance, if an investor puts $1 into Adams, the risk level is 1. If the investment for Adams is $2, the risk level becomes 2. The investor would like to maximize the average annual return on his investment subject to the following restrictions: 1. The average risk level of the entire investment should not exceed 2.5. 2. At least 30% of the entire investment should be placed in money market funds. 3. At most $2,000 should be invested in the aggressive growth fund. Which investment portfolio maximizes the average annual return for this investor? Please answer the following questions: Q1. What are the decision variables? Clearly define them and assign them a symbol (as we do in class). [1 point]

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