1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
leva [86]
4 years ago
15

An investor has at most ​$80 comma 000 to invest in government​ bonds, mutual​ funds, and money market funds. The average yields

for the government​ bonds, mutual​ funds, and money market funds are 8​%, 14​%, and 6​% respectively. The​ investor's policy requires that the total amount invested in mutual and money market funds not exceed the amount invested in government bonds.
How much should be invested in each type of investment in order to maximize the​ return?
What is the maximum return in the first​ year?
Business
1 answer:
Sergeu [11.5K]4 years ago
7 0

Answer:

  • How much should be invested in each type of investment in order to maximize the​ return?

Invest        Value Invested  

Gov Bonds   $40,000  

Mutual F   $40,000  

Market F   -    

TOTAL     $80,000  

  • What is the maximum return in the first​ year?

Invest       Expected Ret. Portfolio  

Gov Bonds  4,0%

Mutual F  7,0%

Market F  0,0%

TOTAL     11,0%

Explanation:

The investor's policy requires that the total amount invested in mutual and money market funds not exceed the amount invested in government bonds.

As Mutual Funds have the higher returns, it means that it's necessary to invest as much as we can in these financial instruments.

If there is no requirement of invest something in the market funds, then to maximize yield, the best option is to invest 50/50 between Government Bonds and Mutual Funds.

You might be interested in
During the past recession, Taylor Tool Company created a __________ organization, when it restructured and eliminated several mi
Studentka2010 [4]

Answer:

Flat organization

Explanation:

Flat organization is the organization or business which is structured with the few or no levels of the management among the staff level employees and the management.

Under this kind of the organization, supervision of the employees is less when promoting the involvement of the employees  in the process of decision making.

Under this scenario, the company established a flat organization as eliminate the middle management.

6 0
3 years ago
An officer of a listed company calls his registered representative and tells him to sell the maximum amount of that company's co
PilotLPTM [1.2K]

Answer:

Exercising call options or pre-emptive rights on that issuer's stock is the correct answer.

Explanation:

8 0
4 years ago
Indicate which of the transactions in the following table will be included in (that is, directly increase) the GDP of the United
Zina [86]

Answer:

1. NOT INCLUDED IN THE GDP, TREETOPPLERS PRODUCES INTERMEDIATE GOODS, NOT FINAL GOODS.

2. NOT INCLUDED IN THE 2017 GDP, IT WOULD BE INCLUDED IN THE 2018 GDP SINCE THE SERVICE WAS FINISHED IN APRIL 2018.

3. INCLUDED IN THE GDP, A HAMBURGER IS A FINAL GOOD THAT FALLS UNDER PRIVATE CONSUMPTION.  

4. NOT INCLUDED IN THE GDP, IMPORTS ACTUALLY DECREASE THE GDP SINCE THEY DECREASE NET EXPORTS.  

5. INCLUDED IN THE GDP, A TABLE IS A FINAL GOOD THAT FALLS UNDER PRIVATE CONSUMPTION.  

4 0
3 years ago
Argument or Nonargument
12345 [234]

Answer:

To focus on the performance...the country does poorly.

Explanation:

Argument or Nonargument

To focus on the performance of the stock market is to zero in on an economic indicator that can do well even as the country does poorly. In 2006, for instance, the Dow Jones industrial average hit highs. According to the just released census data, however, median earnings fell one percent, and millions more Americans entered the ranks of the uninsured. Indeed, from 2000 to 2007 the S&P 500 gained more than 500 points. Meanwhile, the median household income fell by more than $900.The conclusion is....

a) According to the just released..ranks of the uninsured.

b) To focus on the performance...the country does poorly.

c) In 2006, for instance, the Dow Jones...hit highs.

d) Meanwhile...fell by more than $900

The key is to focus on the performance...the country does poorly

4 0
3 years ago
Jennifer is described by her friends as independent, distrusting authority, and technologically savvy. One of her strongest memo
Dafna1 [17]

Answer:

<u>Gen Xers</u>

Explanation:

Gen Xers refers to the generation of those individuals who were born around 1960s.

The above generation has been characterized by witnessing major technological advancements and historical as well as artistic developments such as in the field of music and fine arts.

Some of the behavioral traits associated with them being as skeptic, cynics, technologically aware with respect to their familiarity with technological advancements and prefer independence financially as well as individually.

Thus, Jennifer represents Gen Xers.

4 0
3 years ago
Other questions:
  • At the end of a period (before adjustment), Allowance for Doubtful Accounts has a credit balance of $250. The credit sales for t
    14·1 answer
  • The LIFO conformity rule: Multiple Choice a) Requires that all companies in the same industry use the same accounting methods of
    5·1 answer
  • When it comes to credit cards, what does prepaid mean?
    11·1 answer
  • Bill and Stacy enter into a contract that falls within the provisions of the UETA. Under the UETA, "information that is inscribe
    13·1 answer
  • Cash Now Industries just hired 500 new workers to build ATMs and self-service check-out systems at its manufacturing plant in Te
    5·1 answer
  • Frankfort Corporation purchases an investment in Bradley, Inc. at a purchase price of $9.8 million cash, representing 40% (at bo
    8·1 answer
  • The idea that "the invisible hand" of competition sets prices and determines quantities produced in a market economy was the pri
    13·2 answers
  • A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 10.1%, and the constant growth rate is g = 4.0%.
    11·1 answer
  • Your friend Marco loves being on his phone and interacting on social media. He knows that you are studying different careers and
    12·1 answer
  • Johnson borrowed $45,000 secured by land with a basis of $20,000. Johnson could not pay the principal, so the bank foreclosed an
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!