Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE SHOW STEPS TO SOLVE! An individual is planning the allocation of investments for 2022. The rate of returns for the various investments in 4

PLEASE SHOW STEPS TO SOLVE!

An individual is planning the allocation of investments for 2022. The rate of returns for the various investments in 4 different years are s given in the table below. Due to the high demand in the housing market, the investment in this sector cannot exceed 30% of the total available funds. The investor is a tech enthusiast and wants to allocate at least 10% of the funds to crypto. How should their investment of 50,000$ be allocated to maximize the return?

Rate of return
Investment Year 1 Year 2 Year 3 Year 4
Savings account 9% 7% 4% 12%
Bonds 10.30% 11.80% 9.40% 7.60%
Stocks 6.00% 5.30% 4.10% 7.90%
Housing 12.40% 13.90% 11.40% 9.60%
Crypto 3.40% 5.60% 7.20% 11.10%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

WebAssign For Trigonometry

Authors: Ron Larson

10th Edition

1337879622, 9781337879620

More Books

Students also viewed these Mathematics questions

Question

3. What values would you say are your core values?

Answered: 1 week ago