An investor has at most $80,000 to invest in government bonds, mutual funds, and money market funds. The average yields for the government bonds, mutual funds, and money market funds are 3%, 15%, and 12% respectively. The investor's policy requires that the total amount invested in mutual and money market funds not exceed the amount invested in government bonds. How much should be invested in each type of investment in order to maximize the return? What is the maximum return in the first year? How much should be invested in government bonds? $ 40000 How much should be invested in mutual funds? $ 40000 How much should be invested in money market funds? $0 What is the maximum return in the first year?

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ISBN:9780470458365
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An investor has at most $80,000 to invest in government bonds, mutual funds, and money market funds.
The average yields for the government bonds, mutual funds, and money market funds are 3%, 15%, and
12% respectively. The investor's policy requires that the total amount invested in mutual and money
market funds not exceed the amount invested in government bonds. How much should be invested in
each type of investment in order to maximize the return? What is the maximum return in the first year?
How much should be invested in government bonds?
$ 40000
How much should be invested in mutual funds?
$ 40000
How much should be invested in money market funds?
$0
What is the maximum return in the first year?
Transcribed Image Text:An investor has at most $80,000 to invest in government bonds, mutual funds, and money market funds. The average yields for the government bonds, mutual funds, and money market funds are 3%, 15%, and 12% respectively. The investor's policy requires that the total amount invested in mutual and money market funds not exceed the amount invested in government bonds. How much should be invested in each type of investment in order to maximize the return? What is the maximum return in the first year? How much should be invested in government bonds? $ 40000 How much should be invested in mutual funds? $ 40000 How much should be invested in money market funds? $0 What is the maximum return in the first year?
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