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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 less 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 amount invested in Stocks (rounded to whole dollars). Use Scenario 3 Scenario 1 Scenario 2 Stocks: yield % 2.22 1.71 Bonds: yield % 2.04 1.98 Treasuries: yield % 1.93 1.88 Stocks: $ max 400,000 Bonds: $ max 180,000 Treasuries: $ max 200,000 170,000 60,000 50,000 Scenario 3 1.14 3.03 2.08 410,000 300,000 75,000 Scenario 4 1.25 1.48 2.55 800,000 280,000 500,000

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 less 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 amount invested in Stocks (rounded to whole dollars). Use Scenario 3 Scenario 1 Scenario 2 Stocks: yield % 2.22 1.71 Bonds: yield % 2.04 1.98 Treasuries: yield % 1.93 1.88 Stocks: $ max 400,000 Bonds: $ max 180,000 Treasuries: $ max 200,000 170,000 60,000 50,000 Scenario 3 1.14 3.03 2.08 410,000 300,000 75,000 Scenario 4 1.25 1.48 2.55 800,000 280,000 500,000

Essentials Of Investments
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
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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 less 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 amount invested in Stocks (rounded to whole dollars). Use Scenario 3 Stocks: yield % Bonds: yield % Treasuries: yield % Stocks: $max Bonds: $ max Treasuries: $ max Scenario 1 Scenario 2 2.22 1.71 2.04 1.98 1.93 1.88 170,000 400,000 60,000 180,000 50,000 200,000 Scenario 3 Scenario 4 1.14 1.25 3.03 1.48 2.08 2.55 410,000 300,000 75,000 800,000 280,000 500,000
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 stocks is at least $10,000 less 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 amount invested in Stocks (rounded to whole dollars). Use Scenario 3 Stocks: yield % Bonds: yield % Treasuries: yield % Stocks: $max Bonds: $ max Treasuries: $ max Scenario 1 Scenario 2 2.22 1.71 2.04 1.98 1.93 1.88 170,000 400,000 60,000 180,000 50,000 200,000 Scenario 3 Scenario 4 1.14 1.25 3.03 1.48 2.08 2.55 410,000 300,000 75,000 800,000 280,000 500,000
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