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An individual wants to invest no more than $10,000 in three different mutual funds with annual returns of 8%, 9%, and 10%, respectively. The individual
An individual wants to invest no more than $10,000 in three different mutual funds with annual returns of 8%, 9%, and 10%, respectively. The individual requires an annual return of at least $900 on the investment and wishes to minimize the risk. The second mutual fund is twice as risky as the first, and the third is 4 times as risky as the first. Set up the linear equations to find how the money should be allocated to minimize the risk. (Let risk = X1 + 2x2 + 4x3.) An individual wants to invest no more than $10,000 in three different mutual funds with annual returns of 8%, 9%, and 10%, respectively. The individual requires an annual return of at least $900 on the investment and wishes to minimize the risk. The second mutual fund is twice as risky as the first, and the third is 4 times as risky as the first. Set up the linear equations to find how the money should be allocated to minimize the risk. (Let risk = X1 + 2x2 + 4x3.)
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