An investor has at most $100,000 to invest in government bonds, mutual funds, and money market funds.
Question:
An investor has at most $100,000 to invest in government bonds, mutual funds, and money market funds. The average yields for government bonds, mutual funds, and money market funds are 8%, 13%, and 15%, respectively. The investor’s policy requires that the total amount invested in mutual and money market funds not exceed the amount invested in government bonds. How much should be invested in each type of investment in order to maximize the return? What is the maximum return?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
College Mathematics For Business Economics, Life Sciences, And Social Sciences
ISBN: 978-0134674148
14th Edition
Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker
Question Posted: