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Ama Benyiwa-Doe, an individual investor, has $70,000 to divide among several investments. The alternative investments are municipal bonds, MB with an 8.5% annual return, certicates
Ama Benyiwa-Doe, an individual investor, has $70,000 to divide among several investments. The alternative investments are municipal bonds, MB with an 8.5% annual return, certicates of deposit, CDs with a 5% return, treasury bills, TB with a 6.5% return, & a growth stock fund, GS with a 13% annual return. The investments are evaluated after 1 year. But, each investment has a dierent perceived risk to the investor; so, it is advisable to diversify. Ama wants to know how much to invest in each alternative in order to maximize the return.
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