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The employee credit union at state University is planining the alibcation or funds for the coming year, The credit union makes four types of loans

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The employee credit union at state University is planining the alibcation or funds for the coming year, The credit union makes four types of loans to its member: In addition, the credf union invests in risk-free secunties to stabiline income. The various revenue-producing investments together with annuat rates of return are as follows: The cred t unlon wil have $2.3 miltion available for investment during the coming year. State iaws and credit union policles impose the following restrictions on the composition of the loons and investments: - Raskefree securities may not exceed 30\% of the total funds avallable for investment. - Signature loans moy not exceed 10% of the funds invested in all loans (automoblle, furniture, other secured, and signature loans) - Fumiture ioans plus other secured loans may not exceed the automoblle loans. - Other secured loans plus signature loans moy not exceed the funds invested in risk-free secunties. How should the $2.3 million be allocated to each of the loan/investment alternatives to maximize total annual retum? What is the projected total annual return? Annual Return =5

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