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anonymous

  • 5 years ago

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

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  1. anonymous
    • 5 years ago
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    They both pay out annually, so go with the highest percentage-yielding investment for all but the required $200k that has to be in the lower.

  2. anonymous
    • 5 years ago
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    Ok so a in this case.... WOuld it be the same for this: An investor has $300,000 to invest in two types of investments. Type A pays 4% annually and type B pays 6% annually.

  3. anonymous
    • 5 years ago
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    $100,000 in type A (4%), $200,000 in type B (6%)

  4. anonymous
    • 5 years ago
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    ?

  5. anonymous
    • 5 years ago
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    Well, it seems like too easy of a question to ask. That has me worried. Are you sure there are no other details that you didn't share?

  6. anonymous
    • 5 years ago
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    An investor has $300,000 to invest in two types of investments. Type A pays 4% annually and type B pays 6% 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?

  7. anonymous
    • 5 years ago
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    Same as the above question just different numbers and percentages

  8. anonymous
    • 5 years ago
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    If those are all of the details to be had, then a higher percentage yield will always give you more money if they pay out over the same period. I'm not sure why you are being asked this question more than once.

  9. anonymous
    • 5 years ago
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    I don't either... I thought I'd ask cause I thought maybe it was a trick question, but thank you!

  10. anonymous
    • 5 years ago
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    You're welcome. I'm actually worried about that too hence me asking if those were all of the details. lol

  11. anonymous
    • 5 years ago
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    Panther? Could you help me as well?

  12. anonymous
    • 5 years ago
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    Well it looks like I got it right, but thanks:)

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