Question
An investor has at most $20,000 to invest in governmentbonds, mutualfunds, and money market funds. The average yields for the governmentbonds, mutualfunds, and money market
An investor has at most $20,000 to invest in governmentbonds, mutualfunds, and money market funds. The average yields for the governmentbonds, mutualfunds, and money market funds are 6%, 15%, and 10% respectively. Theinvestor's policy requires that the total amount invested in mutual and money market funds not exceed the amount invested in government bonds. How much should be invested in each type of investment in order to maximize thereturn? What is the maximum return in the firstyear?
How much should be invested in governmentbonds?
$
How much should be invested in mutualfunds?
$
How much should be invested in money marketfunds?
$
What is the maximum return in the firstyear?
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