Question

Bob and Dora Sweet wish to start investing $1,000 each month. The Sweets are looking at five investment plans and wish to maximize their expected return ea rates remain fixed and once their investment plan is selected they do not change their mind. The ch month. Assume interest investment plans offered are: Fidelity 9.1% return per year Optima 16.1% return per year CaseWay 7.3% return per year Safeway 5.6% return per year National 12.3% return per year Since Optima and National are riskier, the Sweets want a limit of 30% per month of their total investments placed in these two investments. Since Safeway and Fidelity are low risk, they want at least 40% of their investment total placed in these investments. Which of the following statements is false? a) 0.091X1 +0.161X2 + 0.073X3 + 0.056X4 + 0.123x5 b) 0.091X1 +0.161X20.073X3 +0.056X4 + 0.123X5 c)X2+ X5 3 300 1000

Answer 1

Answer:

option B

Question:

attached option as they were upload wiht format issued

Explanation:

The first option describes the interest

while the third, show the requireemnt that Optima and National should be more than 30% as the investment is 1,000 the 300 dollar present that 30%

The second equation equalize the amount invested with the interest per period. This is not correct.

is the sum of X1 X2 X3 X4 and X5 which equals 1,000 not their returns