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# 5 ) An investor wishes to invest some or all of his $ 1 2 . 5 million in a diversified portfolio through a
# An investor wishes to invest some or all of his $ million in a diversified portfolio through a commercial lender. The types of investments,
the expected interest per year, and the maximum allowed percentage investment he will consider are shown on the following table. He wants at
least of his investments to be in nonmortgage instruments and no more than to be in highyield and highrisk instruments ie
expected interest How should his investment be diversified to make the most interest income?
Investment
Lowincome mortgage loans
Conventional mortgage loans
Government sponsored
mortgage loans
Bond investments
Stock investments
Futures trading
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