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The Alliance Federal Bank has $675,000 available to invest in a 12-month commitment. The money can be placed in Brazilian treasury notes yielding an 3.5%

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The Alliance Federal Bank has $675,000 available to invest in a 12-month commitment. The money can be placed in Brazilian treasury notes yielding an 3.5% return or in bonds at an average rate of return of 5%. Bank regulations require diversification to the extent that at least $300,000 of the total investment be placed in Treasury notes. It is also decided that no more than $285,000 must be placed in bonds. How much should the Alliance Federal invest in each security so as to maximize its return on. investment? a. Amount invested in Treasury notes = $ [ Select ] b. Amount invested in bonds = $ [Select ] c. Total profit from investment = $ [ Select ] d. Return on investment from the above portfolio = [ Select ] % e. If the Bond investment limitation is raised to no more than 45% of the total amount invested, what impact would it have on the overall return of the portfolio? [ Select ]

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