The amount of Portia should invest in each investment vehicle to maximize her total expected yield and Portia has to invest $10,000.So, she is considering a certificate of deposit (CD) that is expected to yield 5%, a mutual fund expected to yield 7%, and stocks expected to yield 9% on the amount invested in the mutual fund can be no more than the amount invested in the CD and stocks together. The amount availability to invest in the mutual fund and stocks must not be more than $8000.

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Chapter 3, Problem 11RE

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To calculate: The amount of Portia should invest in each investment vehicle to maximize her total expected yield and Portia has to invest $10,000.So, she is considering a certificate of deposit (CD) that is expected to yield 5%, a mutual fund expected to yield 7%, and stocks expected to yield 9% on the amount invested in the mutual fund can be no more than the amount invested in the CD and stocks together. The amount availability to invest in the mutual fund and stocks must not be more than $8000.

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