B.35 The Rio Credit Union has $250,000 available to invest in a 12-month commitment. The money can
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• • B.35 The Rio Credit Union has $250,000 available to invest in a 12-month commitment. The money can be placed in Brazilian treasury notes yielding an 8% return or in riskier highyield bonds at an average rate of return of 9%. Credit union regulations require diversification to the extent that at least 50%
of the investment be placed in Treasury notes. It is also decided that no more than 40% of the investment be placed in bonds.
How much should the Rio Credit Union invest in each security so as to maximize its return on investment?
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Operations Management: Sustainability And Supply Chain Management
ISBN: 9780135225899,9780135202722
13th Edition
Authors: Jay Heizer; Barry Render; Chuck Munson
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