A man would like to invest $50,000 in government bonds and stocks that will give an overall annual return of about 5%. The money to be invested I government bonds will give an annual return of 4.5% and the stock of about 6%. The investments are in units of 100 each. If he desires to keep his stock investment to minimum order to reduce his risk, determine how many government bonds and how stocks should he purchase?
A man would like to invest $50,000 in government bonds and stocks that will give an overall annual return of about 5%. The money to be invested I government bonds will give an annual return of 4.5% and the stock of about 6%. The investments are in units of 100 each. If he desires to keep his stock investment to minimum order to reduce his risk, determine how many government bonds and how stocks should he purchase?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A man would like to invest $50,000 in government bonds and stocks that will give an overall annual return of about 5%. The money to be invested I government bonds will give an annual return of 4.5% and the stock of about 6%. The investments are in units of 100 each. If he desires to keep his stock investment to minimum order to reduce his risk, determine how many government bonds and how stocks should he purchase?
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