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You have $10,000 to invest, and three different funds from which to choose. The municipal Bond fund has 8% return, the local bank's CD's has
You have $10,000 to invest, and three different funds from which to choose. The municipal Bond fund has 8% return, the local bank's CD's has 9% return, and the high- risk account has an expected 14% return. To minimize risk you decide not to invest any more than $1,000 in high risk account. For tax reasons, you need to invest at least three times as much in the bnak of CDs as in the municipal bonds. Assuming the year end yields are as expected, what are the optimal investment amounts?
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