Answer:
She should invest $300,000 in Project A, and $200,000 in Project B.
Explanation:
Solution
Since Project B yields a higher return, she should invest as much money as possible in it, which is 40% of the total investment or
or (0.40)($500,000) = $200,000
so
The remaining $500,000 - $200,000 = $300,000 should be invested in Project A.
Therefore, she should invest $300,000 in Project A, and $200,000 in Project B.
Because they may have extra work to do, or possibly over time, or even just to dedicated to their work for other things.
<span>By diversifying, investors help minimize : Risk
In investment term, diversifying means placing your investments into SEVERAL TYPE of investments (Such as placing some on bonds, placing some on IT market, placing some investment on food products, etc). By doing this, you won't lost all of your investment in case one type of market crashed down.
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The criterion which is most appropriate to use in this
case would be <u>“subjective discomfort”.</u>
<u>
</u>
Subjective discomfort is one of
the signs of abnormality when a person experiences a great deal of emotional
distress while appealing in a particular behavior.
