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Formulate a system of equations for the situation below and solve. A private investment club has $ 4 0 0 , 0 0 0 earmarked
Formulate a system of equations for the situation below and solve.
A private investment club has $ earmarked for investment in stocks. To arrive at an acceptable overall level of risk, the stocks that management is considering have been classified into three categories: highrisk, mediumrisk, and lowrisk. Management estimates that highrisk stocks will have a rate of return of year; mediumrisk stocks, year; and lowrisk stocks, year The members have decided that the investment in lowrisk stocks should be equal to the sum of the investments in the stocks of the other two categories. Determine how much the club should invest in each type of stock if the investment goal is to have a return of $year on the total investment. Assume that all the money available for investment is invested.
highrisk stocks $
mediumrisk stocks $
lowrisk stocks $
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