Portfolio Allocation Model Data Annual Risk factor Investment return Minimum Maximum per dollar An investor has $50,000 to invest in four assets. The expected annual returns, minimum and maximum amounts with which the investor will be comfortable allocating to each investment, and risk factors are shown in the accompanying table. Assume that the investor will tolerate a weighted risk per dollar invested of at most 1.0. Experiment with the accompanying portfolio allocation model by testing each of the possible best solutions, included, to attempt to find the best solution that maximizes the expected annual return and meets the total weighted risk constraint. Click here to view the portfolio allocation model. Life Insurance 5.0% $2,500.00 $5,000.00 Click here to view the returns, minimums, maximums, and risk factors. -0.5 Click here to view some possible best solutions. Bond mutual funds 7.0% $30,000.00 none 1.8 Stock mutual funds Savings Account 11.0% $15,000.00 none 2.1 4.0% none none Total amount available $100,000 Limit -0.3 100,000 The best solution is to invest $ in life insurance, $ (Round to the nearest cent as needed.) in bond mutual funds, $ in stock mutual funds, and $ in savings accounts, for a total expected return of $ - Model Possible Best Solutions Model Data Amount invested Life Insurance Bond mutual funds Stock mutual funds Savings Account $5,000.00 $50,000.00 $15,000.00 $30,000.00 $100,000.00 Total amount invested Total weighted risk Total expected return 110,000.00 $6,600.00 Investment Life Insurance Bond mutual funds Stock mutual funds Savings Account Annual Return Minimum Maximum 5.0% $1,250.00 $2,500.00 7.0% $15,000.00 None 14.0% $7,500.00 None 3.0% None None Risk Factor per Dollar Invested -0.4 1.8 2.1 -0.3 Print Done 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 $16,000.00 in the stock mutual funds and $16,500.00 in the savings account.