low-risk stocks will be at most $1000 more than the amount invested in medium-risk stocks. At least $5000 will be invested in low- and medium-risk stocks. No more than $7000 will be invested in medium- and high-risk stocks. The expected yields are 6% for low-risk stocks, 7% for medium-risk stocks, and 8% for high-risk stocks. How much money should Mr. Jones invest in each type of stock to maximize his total expected yield?
low-risk stocks will be at most $1000 more than the amount invested in medium-risk stocks. At least $5000 will be invested in low- and medium-risk stocks. No more than $7000 will be invested in medium- and high-risk stocks. The expected yields are 6% for low-risk stocks, 7% for medium-risk stocks, and 8% for high-risk stocks. How much money should Mr. Jones invest in each type of stock to maximize his total expected yield?
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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Transcribed Image Text:15. Investment Planning Mr. Jones has $9000 to invest in three
types of stocks: low-risk, medium-risk, and high-risk. He
invests according to three principles. The amount invested in
low-risk stocks will be at most $1000 more than the amount
invested in medium-risk stocks. At least $5000 will be invested
in low- and medium-risk stocks. No more than $7000 will be
invested in medium- and high-risk stocks. The expected yields
are 6% for low-risk stocks, 7% for medium-risk stocks, and 8%
for high-risk stocks. How much money should Mr. Jones invest
in each type of stock to maximize his total expected yield?
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