son.6 The Rio Credit Union has $250,000 available to invest in a 12-month commitment and wantsto invest all of it. The money can be placed in Brazilian treasury notes yielding an 10%return or in riskier high-yield bonds at an average rate of return of 9%. Credit unionregulations require diversification to the extent that at least 40% of the investment be placedin Treasury notes. It is also decided that no more than 40% of the investment be placed inbonds.The aim of the objective function for Rio Credit Union should be to Maximize the objectivevalue.The optimal ROI occurs when:$ invested in Treasury notes = (enter your response as a whole number).

Calculation of investment in treasury notes of Rio credit union is as follows;Here;Investment amount…

Answered: The optimal ROI occurs when:

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The optimal ROI occurs when:

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter22: International Financial Management

Section: Chapter Questions

Problem 3P

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