Friday
July 25, 2014

Homework Help: math

Posted by Anonymous on Thursday, November 15, 2012 at 8:15pm.

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 estimate risk index for the international fund is 9 while the mutual fund risk index is 4. The total risk of the portfolio is found by multiplying the risk of each account by the dollar 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

First Name:
School Subject:
Answer:

Related Questions

Math - A winner of the Florida Lotto has decided to invest $500,000 per year. ...
college math HELP!!!!! - Sharon has a total of $190,000 to invest in three types...
Statistics - You have received a year-end bonus of $5000. You decide to invest ...
economics - A company is planning to invest $75,000 (before taxes) in a ...
home economics - A company is planning to invest $75,000 (before taxes) in a ...
Math(Please help) - Betsy, a recent retiree, requires $6,000 per year in extra ...
math(Please help) - Betsy, a recent retiree, requires $6,000 per year in extra ...
Math - At the end of the first quarter of 2006, all the major stock market ...
pre calc - Carson wants to invest $100,000 in two ways. He wants to purchase a ...
math - Your invest $3,000 annually in a mutual fund that earns 10 percent ...

Search
Members