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Many companies and organizations offer 4 0 1 K plans that allow for individual allocation choice within a set of assets. One example is the

Many companies and organizations offer 401K plans that allow for individual allocation choice within a set of assets. One example is

the American Dental Association; this information is from the information they provided to their members in July 2022. 

Suppose you are helping someone make their investment decisions between these funds and the following information. To ensure diversification, the minimum investment of each fund should be 2.5%, but no more than 70% can be invested in any given fund. Assume, initially, that any risk level (beta) is acceptable. What investment strategy yields the optimal return? The optimal annual return is 15.18.

After optimizing the model, use SolverTable to show the effect on total annual return and the decision variables when the desired risk level ranges from .86 to 1.36 in increments of .05.  Calculate the change in annual return from the ST output.

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Solution A 401 K plan is a type of retirement savings account that allows employees to contribute a portion of their pretax income to a portfolio of investment options such as mutual funds ETFs stocks ... blur-text-image

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