An investor has $50000 to invest in four assets. The expected annual returns, minimum and maximum amounts with which the investor will be comfortable allocating to each investment, and risk factors are shown in the accompanying table. Assume that the investor will tolerate a weighted risk per dollar invested of at most 1.0. Experiment with the accompanying portfolio allocation model by testing each of the possible best solutions, included, to attempt to find the best solution that maximizes the expected annual return and meets the total weighted risk constraint.

The best solution is to invest $enter your response here in life insurance, $. _ enter your response here in bond mutual funds, $_ enter your response here in stock mutual funds, and$._ enter your response here in savings accounts, for a total expected return of $_. enter your response here.

(Round to the nearest cent as needed.)

Life Insurance	3.50%	6,000.00	12,000.00	-0.7
Bond mutual funds	9.00%	72,000.00	None	2
Stock mutual funds	13.50%	36,000.00	None	2.5
Savings Account	2.50%	None	None	-0.5

Portfolio Allocation Model
Data
	Annual			Risk factor
Investment	return	Minimum	Maximum	per dollar
Life Insurance	5.0%	$2,500.00	$5,000.00	-0.5
Bond mutual funds	7.0%	$30,000.00	none	1.8
Stock mutual funds	11.0%	$15,000.00	none	2.1
Savings Account	4.0%	none	none	-0.3
Total amount available	$100,000		Limit	100,000
Model
	Amount
	invested
Life Insurance	$5,000.00
Bond mutual funds	$50,000.00
Stock mutual funds	$15,000.00
Savings Account	$30,000.00
Total amount invested	$100,000.00
Total weighted risk	110,000.00
Total expected return	$6,600.00