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H K N IMPORTANT: This is an individual assignment, you are NOT allowed to receive or give assistance of any kind (do not share your

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H K N IMPORTANT: This is an individual assignment, you are NOT allowed to receive or give assistance of any kind (do not share your file with anyone) Assume you have 5100,000 to invest and have 8 investment alternatives set below. Rates of Return are interpreted as follows. If you invest $100 in Texas Oil, you expect to get a return of $9 after 1 year (100*0.09-9). How much would you invest in each of the 8 Investment alternatives in order to maximize total return after 1 year? The Oil and IT industries offer higher returns but also involve higher risks. To reduce risk, comply with the following guidelines -Guideline 1: Invest no more than 30% of total funds in Oil -Guideline 2: Invest no more than 40% of total funds in IT -Guideline 3: Invest at least 10% of total funds in Retail -Guideline 4: Invest at least 15% of total funds in Textiles Guideline 5: Your Investment in Oil has to be at least as much as vour investment in IT Investment Industry Rate of Return Texas Oil 0.09 Green Oil Oil 0.11 NY Textiles Textiles 0106 Cotton Textiles Textiles 0.07 IT Touch IT 0.13 IT Land IT 0.15 1-Mart Retail Retail 0.04 AllStores Retail Retail 0.05 Oil 0.5 points

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