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Mr. Jones has $10,000 to invest in three types of stocks: low-risk, medium-risk and high-risk. He...

Mr. Jones has $10,000 to invest in three types of stocks: low-risk, medium-risk and high-risk. He invests according to the following rules: the amount invested in low-risk stocks will be at most $2000 more than the amount invested in medium-risk stocks. At least $4000 will be invested in a combination of low- and medium-risk stocks. No more than $8,000 will be invested in a combination of medium- and high-risk stocks. The expected annual returns are 6% for low-risk stocks, 7% for medium-risk stocks, and 8% for high-risk stocks. How much should he invest in each type of stock to maximize his total expected yield?

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ekkarill92 answered 2 years ago
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