You have a new job as a Financial Planning assistant. Your client wants to invest money in stocks, bonds, and treasuries that have the dividend yields shown in the table below. Your job is to allocate their money across these three investments such that the total dollars of stocks is at least $10,000 more than the total dollars in bonds plus treasuries. In addition, they have identified the maximum investment in each of those three investment types (also shown below). Maximize the dividends earned. Your answer will be the total Dividends earned (rounded to whole dollars). Use Scenario 2 Stocks: yield % Bonds: yield % Treasuries: yield % Stocks: $max Bonds: $ max Treasuries: $ max Scenario 1 2.22 2.04 1.93 170,000 60,000 50,000 Scenario 2 1.71 1.98 1.88 400,000 180,000 200,000 Scenario 3 1.14 3.03 2.08 410,000 300,000 300,000 Scenario 4 1.25 1.48 2.55 800,000 750,000 500,000

You have a new job as a Financial Planning assistant. Your client wants to invest money in stocks, bonds, and treasuries that have the dividend yields shown in the table below. Your job is to allocate their money across these three investments such that the total dollars of stocks is at least $10,000 more than the total dollars in bonds plus treasuries. In addition, they have identified the maximum investment in each of those three investment types (also shown below). Maximize the dividends earned. Your answer will be the total Dividends earned (rounded to whole dollars). Use Scenario 2 Stocks: yield % Bonds: yield % Treasuries: yield % Stocks: $max Bonds: $ max Treasuries: $ max Scenario 1 2.22 2.04 1.93 170,000 60,000 50,000 Scenario 2 1.71 1.98 1.88 400,000 180,000 200,000 Scenario 3 1.14 3.03 2.08 410,000 300,000 300,000 Scenario 4 1.25 1.48 2.55 800,000 750,000 500,000

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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Question

You have a new job as a Financial Planning assistant. Your client wants to invest money in stocks, bonds, and treasuries that have the dividend yields
shown in the table below. Your job is to allocate their money across these three investments such that the total dollars of stocks is at least $10,000
more than the total dollars in bonds plus treasuries. In addition, they have identified the maximum investment in each of those three investment types
(also shown below). Maximize the dividends earned.
Your answer will be the total Dividends earned (rounded to whole dollars).
Use Scenario 2
Stocks: yield %
Bonds: yield %
Treasuries: yield %
Stocks: $max
Bonds: $max
Treasuries: $ max
Scenario 1
2.22
2.04
1.93
170,000
60,000
50,000
Scenario 2
1.71
1.98
1.88
400,000
180,000
200,000
Scenario 3
1.14
3.03
2.08
410,000
300,000
300,000
Scenario 4
1.25
1.48
2.55
800,000
750,000
500,000

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