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%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!