Repeat Example 4 with investment A paying 4% and investment B paying 12%. Data from Example 4

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Repeat Example 4 with investment A paying 4% and investment B paying 12%.


Data from Example 4

An investment advisor currently has two types of investments available for clients: a conservative investment A that pays 5% per year and a higher risk investment B that pays 10% per year. Clients may divide their investments between the two to achieve any total return desired between 5% and 10%. However, the higher the desired return, the higher the risk. How should each client invest to achieve the indicated return?

Total investment Annual return desired 1 $20,000 $1,200 (6%) Client 2 $50,000 $ 3,750 (7.5%) 3 $10,000 $ 900

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Finite Mathematics For Business Economics Life Sciences And Social Sciences

ISBN: 9780134862620

14th Edition

Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker

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