Chapter 3.2, Problem 25E

ASSET ALLOCATION Ashley has earmarked at most $\$250,000$ for investment in three mutual funds: a money market fund, an international equity fund, and a growth-and-income fund. The money market fund has a rate of return of $6\%/\text{year}$, the international equity fund has a rate of return of $10\%/\text{year}$ and the growth-and-income fund has a rate of return of $15\%/\text{year}$. Ashley has stipulated that no more than $25\%$ of her total portfolio should be in the growth-and-income fund and that no more than $50\%$ of her total portfolio should be in the international equity fund. To maximize the return on her investment, how much should Ashley invest in each type of fund?