Ace school

with brainly

  • Get help from millions of students
  • Learn from experts with step-by-step explanations
  • Level-up by helping others

A community for students.

An investor has $300,000 to invest in two types of investments. Type A pays 4% annually and type B pays 5% annually. To have a well-balanced portfolio, the investor imposes the following conditions. At least one-third of the total portfolio is to be allocated to type A investments and at least one-third of the portfolio is to be allocated to type B investments. What is the optimal amount that should be invested in each investment?

Mathematics
See more answers at brainly.com
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.

Join Brainly to access

this expert answer

SEE EXPERT ANSWER

To see the expert answer you'll need to create a free account at Brainly

0.04($300.000(1/3)=0.04(100.000) Plan A=$4000 0.05(300.000-100.000) 0.05(200.000) Plant B=$10.000
Ok so I had something similar to this but the answers I can choose from don't match....
you would want to have as much as possible in type B because it pays more. The most you could have is $200,000 due to the condition. So it is $100,000 to type A and $200,000 to type B

Not the answer you are looking for?

Search for more explanations.

Ask your own question

Other answers:

My answer choices are: A.$100,000 in type A (4%), $200,000 in type B (6%) B. $0 in type A (4%), $300,000 in type B (6%) C.$200,000 in type A (4%), $100,000 in type B (6%) D.$300,000 in type A (4%), $0 in type B (6%) E.$110,000 in type A (4%), $190,000 in type B (6%)
Yeah its A
Ok so how did you come up with those numbers....
because I have another problem: An investor has $600,000 to invest in two types of investments. Type A pays 7% annually and type B pays 9% annually. To have a well-balanced portfolio, the investor imposes the following conditions. At least one-third of the total portfolio is to be allocated to type A investments and at least one-third of the portfolio is to be allocated to type B investments. What is the optimal amount that should be invested in each investment? I am assuming then it is the same scenario so my choices would either be: a.$200,000 in type A (7%), $400,000 in type B (9%) b.$210,000 in type A (7%), $390,000 in type B (9%)
?
Nevermind I figured it out thanks anyways

Not the answer you are looking for?

Search for more explanations.

Ask your own question