Posted by **Bryan** on Saturday, November 11, 2006 at 5:09pm.

How can I set this question up?

Client has 800,000 that must be invested in 3 funds. 20 to 40% invested in growth fund, 20 to 50% in income fund and at least 30% in money market fund. Client has a max risk index of 0.05. Risk indicators - growth fund is 0.10, income fund is 0.07 and money market is 0.01. Portfolio risk index is computed as a weighted average of risk rating for the three funds where the weights are the fraction of the clients portfolio invested in each of the funds.

Yields are growth - 18%, income fund - 12.5% and money market - 7.5%.

Forgot to add - Maximize the Yield

Hi,

I need some help on finance investments homework. Can you help me?

If the risk-free rate is 6 percent and the expected rate of return on the market portfolio is 14 percent, is a security with a beta of 1.25 and an expected rate of return of 16 percent overpriced or underpriced?

## Answer this Question

## Related Questions

- Linear Programming - I need help formulating a LP model to solve this question...
- MSIS Management Science Methods - How can I set this question up in Lindo? ...
- Quantitative method - A client who contacted CWD this past week has a maximum of...
- Algebra - Michael invested his savings in two investment funds. The amount he ...
- College Algebra - John invested his savings in two investment funds. The $12,...
- math - Carlos invested his savings in two investment funds. The amount he ...
- math - Aldo invested his savings in two investment funds. The $24, 000that he ...
- Math - Salma invested her savings in two investment funds. The that she ...
- Math - Laura invested her savings in two investment funds. The that she invested...
- accounting - A bond sinking fund investment is started on January 5, 2010, by ...