D E F G Risk factor per dollar Minimum $2,500.00 $30,000.00 $15,000.00 none Maximum $5,000.00 none none none Limit -0.5 1.8 2.1 -0.3 100,000 A B 1 Portfolio Allocation Model 2 3 Data 4. Annual 5 Investment return 6 Life Insurance 5.0% 7 Bond mutual funds 7.0% 8 Stock mutual funds 11.0% 9 Savings Account 4.0% 10 Total amount available $100,000 11 12 Model 13 14 Amount 15 invested 16 Life Insurance $5,000.00 17 Bond mutual funds $50,000.00 18 Stock mutual funds $15,000.00 19 Savings Account $30,000.00 20 21 Total amount invested $100,000.00 22 Total weighted risk 110,000.00 23 24 Total expected return $6,600.00 25 26 o a Model Data Investment Life Insurance Bond mutual funds Stock mutual funds Savings Account Annual Return 5.5% 6.0% 14.0% 4.5% Risk Factor per Minimum Maximum Dollar Invested $5,000.00 $10,000.00 -0.4 $60,000.00 None 1.9 $30,000.00 None 2.2 None None -0.3 Print Done - 1 Possible Best Solutions Some possible best solutions to try are listed below. Invest the minimum amount in life insurance, bond mutual funds, and stock mutual funds, and invest everything else in the savings account. Invest the maximum possible in life insurance, the minimum possible in bond and stock mutual funds, and invest everything else in the savings account. Invest the maximum in life insurance and the minimum in bond mutual funds. Determine the amount to invest in stock mutual funds based on the remaining money and the appropriate risk factors. Invest everything else in the savings account. Invest the maximum in life insurance and the minimum in bond mutual funds. Invest $53,000.00 in the stock mutual funds and $77,000.00 in the savings account ( Print Symanthia Bryson (sbb016@bravemail.uncp D E F G Risk factor per dollar Minimum $2,500.00 $30,000.00 $15,000.00 none Maximum $5,000.00 none none none Limit -0.5 1.8 2.1 -0.3 100,000 A B 1 Portfolio Allocation Model 2 3 Data 4. Annual 5 Investment return 6 Life Insurance 5.0% 7 Bond mutual funds 7.0% 8 Stock mutual funds 11.0% 9 Savings Account 4.0% 10 Total amount available $100,000 11 12 Model 13 14 Amount 15 invested 16 Life Insurance $5,000.00 17 Bond mutual funds $50,000.00 18 Stock mutual funds $15,000.00 19 Savings Account $30,000.00 20 21 Total amount invested $100,000.00 22 Total weighted risk 110,000.00 23 24 Total expected return $6,600.00 25 26 o a Model Data Investment Life Insurance Bond mutual funds Stock mutual funds Savings Account Annual Return 5.5% 6.0% 14.0% 4.5% Risk Factor per Minimum Maximum Dollar Invested $5,000.00 $10,000.00 -0.4 $60,000.00 None 1.9 $30,000.00 None 2.2 None None -0.3 Print Done - 1 Possible Best Solutions Some possible best solutions to try are listed below. Invest the minimum amount in life insurance, bond mutual funds, and stock mutual funds, and invest everything else in the savings account. Invest the maximum possible in life insurance, the minimum possible in bond and stock mutual funds, and invest everything else in the savings account. Invest the maximum in life insurance and the minimum in bond mutual funds. Determine the amount to invest in stock mutual funds based on the remaining money and the appropriate risk factors. Invest everything else in the savings account. Invest the maximum in life insurance and the minimum in bond mutual funds. Invest $53,000.00 in the stock mutual funds and $77,000.00 in the savings account ( Print Symanthia Bryson (sbb016@bravemail.uncp