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
inessss [21]
2 years ago
6

A private investment club has $300,000 earmarked for investment in stocks. To arrive at an acceptable overall level of risk, the

stocks that management is considering have been classified into three categories: high-risk, medium-risk, and low-risk. Management estimates that high-risk stocks will have a return rate of 15%; medium-risk stocks, 10%; and low-risk stocks, 6%. The members have decided that the investment in low-risk stocks should be equal to the sum of the investments in the stocks of the other two categories. Determine how much the club should invest in each type of stock if the investment goal is to have a return of $30,000 on the total investment. (Assume that all the money available for investment is invested. Let x, y, and z denote the amount, in dollars, invested in high-, medium-, and low-risk stocks, respectively.)
Business
1 answer:
Alexeev081 [22]2 years ago
3 0

Answer:

Investment in low risk=$150,000

Investment in medium risk =$30,000

Investment in high risk=$120,000

Explanation:

✓We can denote the investment in high risk as $x

✓ We can denote the investment medium risk as $y

✓We can denote the investment in low risk as($x + $y)

The summation of the investment = x + y +( x + y )= $300,000

If we add the like-terms together we have,

2x + 2y = $300,000

If we divide the both sides by 2, we have

x+y = 150,000

If we make "x" as subject of the formula, we have

x =150,000 -y •••••••••••eqn(**)

Total return on investments is

0.15x +0.10y +0 .06(x+y) = $30,000••••••••••••••••••••••••••••eqn(#)

Substitute for x from eqn(**) into equation (#)

0.15(150,000 -y) + 0.10y + 0.06(150,000-y +y) = 30,000

22500-0.15y+0.10y+9000= 30,000

0.05y=1500

y=1500/0.05

y=30,000

Recall, x =150,000 -y

Then

x = 150,000 - 30,000 = 120,000

y=30,000

x=120,000

Investment in low risk = x + y

= 30,000+120,000= 150,000

Hence, the investment in high risk

is $120,000, the investment medium risk is $30,000 and the investment in low risk is $ 150,000.

You might be interested in
The fundamental economic problem is meeting people’s virtually unlimited needs and wants with limited resources.Question 3 optio
Solnce55 [7]

Answer:

The correct answer is: True.

Explanation:

The basic or fundamental problem in economics is people have unlimited wants and needs and the resources are limited. These limited resources have alternative uses and are used to satisfy unlimited wants and needs.

These resources are to be used rationally in such a way that total utility or consumption derived is maximized.

7 0
3 years ago
The unemployment rate in a town in which 65,400 persons are employed and 11,000 are unemployed equals:
Over [174]

Based on the number of people that are employed and those who are unemployed in this town, the unemployment rate is 14.4%.

<h3>What is the unemployment rate?</h3>

The unemployment rate can be found by the formula:
= Employed people / (Unemployed + Employed people)

Solving gives:

= (11,000) / (65,400 + 11,000)

= 11,000 / 76,400

= 14.4%

In conclusion, the rate is 14.4%.

Find out more on the unemployment rate at brainly.com/question/13280244.

7 0
1 year ago
Bellue Incorporated manufactures a single product. Variable costing net operating income was $92,400 last year and its inventory
s2008m [1.1K]

Answer:

6,000

Explanation:

Bellue incorporated manufactures a single product

The variable costing net operating income is $92,400

The inventory is 3100 units

The fixed manufacturing overhead cost is $1

Therefore the absorption cost can be calculated as follows

= 9200-1 x3200

= 9200- 3200

= 6000

Hence the absorption cos is $6,000

7 0
3 years ago
Cost of goods sold for a merchandising company, direct materials and commissions are all examples of
katovenus [111]

For a merchandising company, the cost of goods sold, direct materials, and commissions are <u>variable costs</u>.

<h3>What is a variable cost?</h3>

A variable cost is the cost element that remains constant per unit while the total changes.  Other examples of variable costs include direct labor, variable selling and administrative expenses, including commissions and shipping costs.

Thus, for a merchandising company, the cost of goods sold, direct materials, and commissions are all examples of <u>variable costs</u>.

Learn more about variable costs here: brainly.com/question/5965421

8 0
2 years ago
Which is most likely to result from a layoff of factory workers in a town?
Soloha48 [4]
<span>The most likely result from a layoff of factory workers in a town is that the unemployment rate will rise, at least temporarily. This is assuming the factory is in the US and all workers are full time. Other government services might also see an increase, such as food stamps, job training services, etc.</span>
7 0
2 years ago
Other questions:
  • HOW MUCH IS 5OO ROUNDED TO THE NEAREST 10TH
    6·1 answer
  • Countries that liberalize international trade and investment enjoy faster per-capita economic growth.
    11·1 answer
  • Chris Cole is a salesperson for Green Scene Lawn Care products. Chris' job requires him to sell Green Scene products, but he is
    10·1 answer
  • Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing departme
    14·1 answer
  • In​ Keynes's analysis of the speculative demand for​ money, what will happen to money demand if people suddenly decide that the
    13·1 answer
  • Suppose the governments of two different economies, economy A and economy B, implement a permanent tax cut of the same size. Inv
    7·1 answer
  • Should a speaker minimize his or her use of nonverbal communication?
    15·2 answers
  • A small clothing company plans to sell a new line of shirts. The selling price will be $35 per shirt. The labor costs will be $5
    6·1 answer
  • ADP reports the following income statement.
    12·1 answer
  • D
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!