Question
Application (Matrix Equation) Example 2: (Investment Analysis) An investment advisor currently has two types of investments available for clients: A conservative investment A that pays
Application (Matrix Equation) Example 2: (Investment Analysis) An investment advisor currently has two types of investments available for clients: A conservative investment A that pays 10% per year and a higher risk investment B that pays 20%
per year. Clients may divide their investments between the two to achieve any total return desired between 10% and 20%. However, the higher the desired return, the higher the risk. How should each client invest to achieve the indicated return? Client
Total investment $20,000 $ 2,400 Annual return desired (12% )
$50,000 $ 7,500 (15% )
$10,000 $ 1,300 (13%)
NOTE: pleas could you make the answer clear, thank you.
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