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please help . thanks! An investor has $150,000 to invest in four assets. The expected annual returns, minirnum and maximum amounts with which the investor
please help . thanks!
An investor has $150,000 to invest in four assets. The expected annual returns, minirnum and maximum amounts with which the investor will be comfortable allocating to each investment, and risk factors are shown in the accompanying table. Assume that the investor will tolerate a weighted risk per dollar irvested of at most 1.0. Experiment with the accompanying portfolio atocation modes by testing each of the possible best solutions, included, to attempt to find the best solution that maximizes the expected annusal relum and meets the total weighted risk consiraint The best solution is to invests in life insuiance. 3 in bond mutual funds, 3 in stock mutual funds, and 3 in 5 avings accourits, for a folal expected retum of 5 Possible Best Solutions Some possible best solutions to try are listed below. - Invest the minimum amount in life insurance, bond mutual funds, and stock mutual funds, and invest everything else in the savings account. - Invest the maximum possible in life insurance, the minimum possible in bond and stock mutual funds, and invest everything else in the savings account. - Invest the maximum in life insurance and the minimym in bond mutual funds. Determine the amount to invest in stock mutual funds based on the remaining money and the appropriate risk factors. Invest everything else in the savings account. - Invest the maximum in life insurance and the minimum in bond mutual funds. Invest $43,000.00 in the stock mutual funds and $54,500.00 in the savings account Step by Step Solution
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