of return of 6%/year, the international equity fund has a rate of return of 10%/year, and the growth-and-income fund has a rate of return of 15%/year. Ashley has stipulated that no more than 25% of her total portfolio should be in the growth-and-income fund and that no more than 50% of her total portfolio should be in the international equity fund. To maximize the return on her investment, how much should Ashley invest in each type of fund? money market fund $4 international equity fund $ growth-and-income fund What is the maximum return?
of return of 6%/year, the international equity fund has a rate of return of 10%/year, and the growth-and-income fund has a rate of return of 15%/year. Ashley has stipulated that no more than 25% of her total portfolio should be in the growth-and-income fund and that no more than 50% of her total portfolio should be in the international equity fund. To maximize the return on her investment, how much should Ashley invest in each type of fund? money market fund $4 international equity fund $ growth-and-income fund What is the maximum return?
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:Ashley has earmarked at most $850,000 for investment in three mutual funds: a money market fund, an international equity fund, and a growth-and-income fund. The money market fund has a rate
of return of 6%/year, the international equity fund has a rate of return of 10%/year, and the growth-and-income fund has a rate of return of 15%/year. Ashley has stipulated that no more than 25% of
her total portfolio should be in the growth-and-income fund and that no more than 50% of her total portfolio should be in the international equity fund. To maximize the return on her investment, how
much should Ashley invest in each type of fund?
money market fund
international equity fund
$
growth-and-income fund
What is the maximum return?
$
%24
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