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- X Model Data Investment Life Insurance Bond mutual funds Stock mutual funds Savings Account Annual Return 4.0% 7.0% 11.096 3.5% Risk Factor per Minimum Maximum Dollar Invested $3.750.00 $7,500.00 -0.5 $45,000.00 None 1.8 $22,500.00 None 2.2 None None -0.3 Print Done Portfolio Allocation Model Data Investment Life Insurance Bond mutual funds Stock mutual funds Savings Account Total amount available Annual return 5.0% 7.0% 11.0% 4.0% $100,000 Minimum $2,500.00 $30,000.00 $15,000.00 none Maximum $5,000.00 none none none Limit Risk factor per dollar -0.5 1.8 2.1 -0.3 100,000 Model . 5 6 Amount invested Life Insurance $5,000.00 Bond mutual funds $50,000.00 Stock mutual funds $15,000.00 Savings Account $30,000.00 - 3 Total amount invested $100,000.00 2 Total weighted risk 110,000.00 B Total expected return $6,600.00 5 An investor has $150,000 to invest in four assets. The expected annual returns, minimum and maximum amounts with which the investor will be comfortable allocating to each investment, and risk factors are shown in the accompanying table. Assume that the investor will tolerate a weighted risk per dollar invested of at most 1.0. Experiment with the accompanying portfolio allocation model by testing each of the possible best solutions, included attempt to find the best solution that maximizes the expected annual return and meets the total weighted risk constraint. Click here to view the portfolio allocation model Click here to view the returns, minimums, maximums, and risk factors. Click here to view some possible best solutions. X The best solution is to invest $ 7500 in life insurance. $ 45000 in bond mutual funds. $ 42900 in stock mutual funds, and s4&do in savings accounts, for a total expected return of s10238 (Round to the nearest cent as needed.) - X Model Data Investment Life Insurance Bond mutual funds Stock mutual funds Savings Account Annual Return 4.0% 7.0% 11.096 3.5% Risk Factor per Minimum Maximum Dollar Invested $3.750.00 $7,500.00 -0.5 $45,000.00 None 1.8 $22,500.00 None 2.2 None None -0.3 Print Done Portfolio Allocation Model Data Investment Life Insurance Bond mutual funds Stock mutual funds Savings Account Total amount available Annual return 5.0% 7.0% 11.0% 4.0% $100,000 Minimum $2,500.00 $30,000.00 $15,000.00 none Maximum $5,000.00 none none none Limit Risk factor per dollar -0.5 1.8 2.1 -0.3 100,000 Model . 5 6 Amount invested Life Insurance $5,000.00 Bond mutual funds $50,000.00 Stock mutual funds $15,000.00 Savings Account $30,000.00 - 3 Total amount invested $100,000.00 2 Total weighted risk 110,000.00 B Total expected return $6,600.00 5 An investor has $150,000 to invest in four assets. The expected annual returns, minimum and maximum amounts with which the investor will be comfortable allocating to each investment, and risk factors are shown in the accompanying table. Assume that the investor will tolerate a weighted risk per dollar invested of at most 1.0. Experiment with the accompanying portfolio allocation model by testing each of the possible best solutions, included attempt to find the best solution that maximizes the expected annual return and meets the total weighted risk constraint. Click here to view the portfolio allocation model Click here to view the returns, minimums, maximums, and risk factors. Click here to view some possible best solutions. X The best solution is to invest $ 7500 in life insurance. $ 45000 in bond mutual funds. $ 42900 in stock mutual funds, and s4&do in savings accounts, for a total expected return of s10238 (Round to the nearest cent as needed.)

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