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Hi, I need help on a finance problem. Thank you in advance. You have $10,000 to invest, and three different funds from which to choose.
Hi, I need help on a finance problem. Thank you in advance.
You have $10,000 to invest, and three different funds from which to choose. The municipal bond fund has 8% return, the local bank's CDs has 9% return, and the high-risk account has an expected return. To minimize risk, you decide not to invest any more $1,000 in the high-risk account. For tax reason invest at least three times as much in the bank CDs as in municipal bonds. what are the optimal investment amounts? than s, you need to the Assuming the year-end yields are as expected, Instructions to answer the following questions You must write the answer to each of the question in the box provided. Any answer written outside the box will be ignored for grading purpose. 1. Idantify the decision variables - x2- 2. Write down the Objective function using notation from Q.1 (0.09)Step by Step Solution
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