Posted by **Nica** on Saturday, September 17, 2011 at 12:10pm.

A winner of the Florida Lotto has decided to

invest $500,000 per year. Two possible

considerations are an international stock with an

estimated return of 12% and a mutual fund with an

estimated return of 6%. The estimated risk index for

the international fund is 9 while the mutual fund

risk index is only 4. The total risk of the portfolio is

found by multiplying the risk of each account by the

dollars invested in that option. The investor would

like to maximize the return on the investment, but

the average risk index of the portfolio should not be

higher than 6 based on the estimated retirement

date. How much should be invested in each option?

What is the average risk for this investment? What

is the estimated return for the investment?

## Answer this Question

## Related Questions

- math - A winner of the Florida Lotto has decided to invest $500,000 per year. ...
- Statistics - You have received a year-end bonus of $5000. You decide to invest ...
- college math HELP!!!!! - Sharon has a total of $190,000 to invest in three types...
- Personal Finance - 3. Highest performing mutual fund (averaged more than 20%) ...
- math - Your invest $3,000 annually in a mutual fund that earns 10 percent ...
- Finance - You are considering buying 100 shares of TEXAS INC common stock. The ...
- Math - You are considering two mutual funds for your investment. The possible ...
- General Math - I am so confused can anyone help me understand which one is ...
- Probabability - You are given monthly annualized total return data for two ...
- Finance - Consider the following information and calculate the required rate of ...

More Related Questions