Question
You are about to invest your entire saving of $300,000 in the stock market. The risk has to be minimized. How many of each stock
You are about to invest your entire saving of $300,000 in the stock market. The risk has to be minimized. How many of each stock & mutual fund of each of the following 4 options should you buy with the following conditions:
Ford Stock | Stock FTR | Mutual Fund | Magna | |
Price Share | $12 | $3 | $10 | $30 |
ROI | 6% | 10% | 3% | 11% |
Risk to Lose | 8% | 15% | 4% | 10% |
-The Return of investment must be bigger than 7.5% -The amount invested in Mutual Fund should be at most 50% of the amount invested in Ford & FTR combined -The number of shares of Ford & FTR combined (not the amount) should be at least 7 times of number of shares of Magna -Minimum investment in each stock or mutual fund should be at least 15% of the total saving, but not more than 25% of the total saving -According to your optimized solution, how much would they potentially gain at the end of the year? And how much could they potentially lose? -Find all the Slacks & Surpluses indicate which one is slack and which one is surplus
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