Quantcast

Got Homework?

Connect with other students for help. It's a free community.

  • across
    MIT Grad Student
    Online now
  • laura*
    Helped 1,000 students
    Online now
  • Hero
    College Math Guru
    Online now

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

mmbuckaroos Group Title

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?

  • 3 years ago
  • 3 years ago

  • This Question is Closed
  1. Brandon Lam Group Title
    Best Response
    You've already chosen the best response.
    Medals 0

    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

    • 3 years ago
  2. mmbuckaroos Group Title
    Best Response
    You've already chosen the best response.
    Medals 0

    Ok so I had something similar to this but the answers I can choose from don't match....

    • 3 years ago
  3. rcw658 Group Title
    Best Response
    You've already chosen the best response.
    Medals 0

    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

    • 3 years ago
  4. mmbuckaroos Group Title
    Best Response
    You've already chosen the best response.
    Medals 0

    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%)

    • 3 years ago
  5. rcw658 Group Title
    Best Response
    You've already chosen the best response.
    Medals 0

    Yeah its A

    • 3 years ago
  6. mmbuckaroos Group Title
    Best Response
    You've already chosen the best response.
    Medals 0

    Ok so how did you come up with those numbers....

    • 3 years ago
  7. mmbuckaroos Group Title
    Best Response
    You've already chosen the best response.
    Medals 0

    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%)

    • 3 years ago
  8. mmbuckaroos Group Title
    Best Response
    You've already chosen the best response.
    Medals 0

    ?

    • 3 years ago
  9. mmbuckaroos Group Title
    Best Response
    You've already chosen the best response.
    Medals 0

    Nevermind I figured it out thanks anyways

    • 3 years ago
    • Attachments:

See more questions >>>

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.