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 bonds plus treasuries is greater than or equal to the total dollars of stocks. 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 dollars to be invested in Bonds (rounded to whole dollars).
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 bonds plus treasuries is greater than or equal to the total dollars of stocks. 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 dollars to be invested in Bonds (rounded to whole dollars).
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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Hello please explain. Thank you very much.
Transcribed Image Text: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 bonds plus treasuries is greater than or equal to the total
dollars of stocks. 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 dollars to be invested in Bonds (rounded to whole dollars).
Use Scenario 5
Scenario 1
Scenario 2
Scenario 3
Scenario 4
Scenario 5
1.44
1.55
Stocks: yield %
1.22
1.33
0.97
Bonds: yield %
3.04
2.97
3.03
1.48
0.44
Treasuries: yield %
2.46
2.08
2.99
4.01
1.95
Stocks: $ max
70,000
150,000
1.110,000
440,000
777,000
Bonds: $ max
60,000
20,000
300,000
150.000
505.000
25,000
80,000
300,000
100,000
465.000
Treasuries: $ max
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