Question: PLEASE SHOW STEPS TO SOLVE! An individual is planning the allocation of investments for 2022. The rate of returns for the various investments in 4
PLEASE SHOW STEPS TO SOLVE!
An individual is planning the allocation of investments for 2022. The rate of returns for the various investments in 4 different years are s given in the table below. Due to the high demand in the housing market, the investment in this sector cannot exceed 30% of the total available funds. The investor is a tech enthusiast and wants to allocate at least 10% of the funds to crypto. How should their investment of 50,000$ be allocated to maximize the return?
| Rate of return | ||||
| Investment | Year 1 | Year 2 | Year 3 | Year 4 |
| Savings account | 9% | 7% | 4% | 12% |
| Bonds | 10.30% | 11.80% | 9.40% | 7.60% |
| Stocks | 6.00% | 5.30% | 4.10% | 7.90% |
| Housing | 12.40% | 13.90% | 11.40% | 9.60% |
| Crypto | 3.40% | 5.60% | 7.20% | 11.10% |
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