An Investor Wants to Invest $50,000 in Two Mutual Funds

question 17

Essay

An investor wants to invest $50,000 in two mutual funds, A and B. The rates of return, risks and minimum investment requirements for each fund are:
$\begin{array}{cccc}\text { Fund } & \text { Rate of return } & \text { Risk } & \text { Minimum investment } \\\hline \mathrm{A} & 12 \% & 0.5 & \$ 20,000 \\\mathrm{~B} & 9 \% & 0.3 & \$ 10.000\end{array}$
Note that a low Risk rating means a less risky investment. The investor can invest to maximize the expected rate of return or minimize risk. Any money beyond the minimum investment requirements can be invested in either fund.
Formulate the MOLP for this investor.

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Definitions:

Autism

A disorder usually diagnosed in young children, and characterized by a wide range of developmental problems, including language and motor problems.

Repetitive Movement Patterns

Repeated actions or sequences of movements often observed in physical, therapeutic, or training contexts.

Impairment In Communication

A condition or situation that negatively affects an individual's ability to convey or receive messages effectively.

Preference For Sameness

A tendency or desire to maintain consistency and routine in one’s environment or activities, often observed in individuals with autism spectrum disorders.