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The employee credit union at State University is planning the allocation of funds for the coming vear. The credit union makes four types of loans

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The employee credit union at State University is planning the allocation of funds for the coming vear. The credit union makes four types of loans to its members. In addition, the credit union invests in risk-free securities to stabilize income. The various revenueproducing investments together with arnual rates of return are as follows. The credit union will have 51.5 miltion available for investment during the coming year. State laws and credit union policies impose the following restrictions on the composition of the loans and investments: - Risk-frae securitics may not exceed 30%6 of the total funds avallable for investment. - Signature loans may not exceed 11% of the funds invested in all losns (automobile, furniture, other secured, and signature loans). - Fumitare loans plus other secured loans may not exceed the automobile loans. - Other secured foans plus signature loans may not exceed the funds invested in risk-free securities. How should the $1.5 million be allocated to each of the loan/investment alternatives to maximize total annual return? What is the projected total annual return? $ The employee credit union at State University is planning the allocation of funds for the coming vear. The credit union makes four types of loans to its members. In addition, the credit union invests in risk-free securities to stabilize income. The various revenueproducing investments together with arnual rates of return are as follows. The credit union will have 51.5 miltion available for investment during the coming year. State laws and credit union policies impose the following restrictions on the composition of the loans and investments: - Risk-frae securitics may not exceed 30%6 of the total funds avallable for investment. - Signature loans may not exceed 11% of the funds invested in all losns (automobile, furniture, other secured, and signature loans). - Fumitare loans plus other secured loans may not exceed the automobile loans. - Other secured foans plus signature loans may not exceed the funds invested in risk-free securities. How should the $1.5 million be allocated to each of the loan/investment alternatives to maximize total annual return? What is the projected total annual return? $

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