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investment strategy to meet clients needs. innis investment management funds for a number of companies and clients. the investment strategy is tailored to each client's

investment strategy to meet clients needs. innis investment management funds for a number of companies and clients. the investment strategy is tailored to each client's needs. for a new client, Innis has been authorised to invest up to $1.2 million in two investment funds: a stock fund and a money market fund. each unit of the stock fund costs $50 and provides an annual rate of return of 10%; each unit of the money market find costs $100 and provides an annual rate of return of 4%. the client wants to minimize risk subject to the requirement that the annual income from the investment be at least $60,000. according to Innis's risk measurement system, each units invested in the stock fund has a risk index of 8, and each unit invested in the money market fund has a risk index of 3; the higher risk index associated with the stock fund simply indicates that it is the riskier investment. Innis's client also specified that at least $300,000 be invested in the money market fund. a. determine how many units of each fund innis should purchase for the client to minimize the total risk index for the portfolio. b. how much annual income will this investment strategy generate? c. suppose the client desires to maximize annual return. how should the fund be invested?i

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