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Suppose you have $ 1 6 , 0 0 0 to invest in three stocks, A , B , and C . Stock A is
Suppose you have $ to invest in three stocks, A B and C Stock A is a lowrisk stock that has expected returns of Stock B is a mediumrisk stock that has expected returns of Stock is a highrisk stock that has expected returns of You want to invest at least $ in each stock. To balance the risks, you decide to invest no more than $ in stock and to limit the amount invested in to less than times the amount invested in stock You also decide to invest less than twice as much in stock B as in stock A How much should you invest in each stock to maximize your expected profit?
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