you have $100 to invest in two different investment projects, A and B, the total returns...

you have $100 to invest in two different investment projects, A and B, the total returns from which (TR and TR) are given below. the cost of purchasing a unit of investment in each project is $10 per unit. your problem is to invest the $100 in the two invest the $100 in the two investments so as to maximize your total return (for example, if you invested the entire $100 in investment B, you would receive a total return of $105.) what is the general principle that defines the maximizing allocation of the $100 among the investment options?

# units	TR A	TR B
1	$20	$15
2	38	29
3	54	42
4	68	54
5	80	65
6	90	75
7	98	84
8	104	92
9	108	99
10	110	105

Expert Solution

Rahul Sunny answered 1 year ago

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